Pernod Ricard (0HAT – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Zheng Feng Chee from DBS maintained a Buy rating on the stock and has a €166.00 price target.
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Zheng Feng Chee has given his Buy rating due to a combination of factors influencing Pernod Ricard’s potential for growth. The company has shown resilience through its diversified geographical presence, which helps offset challenges in major markets like the US and China. Performance in regions such as Japan, Canada, Poland, and India has been notably strong, with India now surpassing China in terms of sales contribution. This diversified strength supports a positive outlook despite some anticipated softness in sales figures, particularly in the early part of the fiscal year.
Additionally, Pernod Ricard’s commitment to long-term growth is evident through their strategic investments in capacity expansion, which are aligned with maintaining a stable dividend policy. The firm is poised for recovery in organic volume growth, backed by operational efficiencies and moderated pricing. Despite short-term challenges, the company’s strategic positioning and financial strategies underpin the Buy recommendation, with a target price set at EUR166, reflecting confidence in future performance.
Feng Chee covers the Consumer Defensive sector, focusing on stocks such as Ajinomoto Co, Kirin Holdings Company, and Coca-Cola. According to TipRanks, Feng Chee has an average return of -13.4% and a 35.71% success rate on recommended stocks.
In another report released today, Bernstein also maintained a Buy rating on the stock with a €164.00 price target.