Update shared on 31 Oct 2025
Fair value Increased 0.37%The analyst fair value estimate for Pernod Ricard has seen a modest increase from €104.33 to €104.72. Analysts are updating price targets in response to cautious outlooks on the company's growth and valuation.
Analyst Commentary
Recent updates from the analyst community indicate a mix of optimism and caution surrounding Pernod Ricard's performance and future prospects. The following perspectives highlight the contrasting views on the company's valuation, growth, and operational execution.
Bullish Takeaways
- Bullish analysts see long-term potential, maintaining positive ratings and only modestly reducing price targets in light of general market caution.
- Some believe Pernod Ricard's premium positioning and global brand portfolio can support resilient growth over time.
- The company's ability to navigate challenging market conditions is viewed as a sign of management's strong execution.
- Valuation remains attractive to optimistic analysts, who expect a recovery in demand to benefit earnings outlooks.
Bearish Takeaways
- Bearish analysts have downgraded ratings, noting increased downside risk to earnings and consensus targets.
- Concerns have been raised about the company's current valuation level, with shares described as expensive given ongoing industry headwinds.
- Lowered price targets reflect expectations of slower growth and more tempered performance in the near term.
- Market uncertainties and cautious sentiment around consumer demand trends weigh on the short-term outlook for the stock.
What's in the News
- Citi lowered its price target on Pernod Ricard shares to EUR 114 from EUR 118 and maintained a Buy rating (Periodicals).
- Pernod Ricard SA reaffirmed sales guidance for fiscal year 2026 and expects improving organic net sales trends, especially in the second half (Key Developments).
- The company provided medium-term guidance for fiscal years 2027 to 2029, aiming for organic net sales growth between 3% and 6% per year with annual margin expansion (Key Developments).
- At the AGM on October 27, 2025, shareholders approved amendments to Articles 21 and 33 of Pernod Ricard's bylaws (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly from €104.33 to €104.72.
- Discount Rate remains unchanged at 5.98%.
- Revenue Growth expectation has declined modestly from -1.37% to -1.42%.
- Net Profit Margin is up marginally from 16.54% to 16.57%.
- Future P/E ratio has increased slightly, moving from 17.92x to 17.99x.
Disclaimer
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