Update shared on 29 Nov 2025
Fair value Decreased 1.59%The analyst price target for Pernod Ricard has been reduced from €104.72 to €103.06, as analysts cite heightened concerns over revenue growth and increased downside risks to consensus estimates.
Analyst Commentary
Recent analyst research on Pernod Ricard presents a mixed outlook, with both positive and cautious perspectives influencing updated price targets and ratings.
Bullish Takeaways
- Bullish analysts maintain a Buy rating, reflecting continued confidence in the company's underlying business fundamentals and long-term growth potential.
- Valuation remains attractive to some, as revised price targets still suggest meaningful upside from current levels.
- There is optimism around management's ability to execute on cost control initiatives and premiumization strategies. These factors could support earnings resilience.
Bearish Takeaways
- Several analysts have lowered their ratings in response to softening revenue momentum and rising downside risks to consensus forecasts.
- Cautious commentators point to the stock's valuation as elevated when compared to peers. This may limit further upside in the near term.
- Reduced price targets across multiple firms reflect ongoing concerns about execution in challenging macroeconomic conditions and uncertain demand trends.
- There is increased attention on the company's ability to meet growth expectations amid shifting consumer preferences and market dynamics.
What's in the News
- Citi reduced Pernod Ricard's price target to EUR 114 from EUR 118, while maintaining a Buy rating (Periodical).
- At the Annual General Meeting on October 27, 2025, shareholders approved amendments to Articles 21 and 33 of the company bylaws (Key Development).
- Pernod Ricard reaffirmed its sales guidance for fiscal year 2026, expecting improved trends in organic net sales, especially in the second half (Key Development).
- The company provided medium-term guidance for fiscal years 2027 to 2029, projecting 3% to 6% average annual organic net sales growth and ongoing operating margin expansion (Key Development).
Valuation Changes
- Consensus Analyst Price Target has decreased modestly from €104.72 to €103.06, reflecting lower anticipated upside.
- Discount Rate remains stable at 6.18%, indicating no material shift in perceived risk.
- Revenue Growth projections have declined further from -1.42% to -1.52% year-over-year, signaling heightened caution about top-line trends.
- Net Profit Margin is expected to improve slightly, rising from 16.57% to 16.62%.
- Future P/E multiple has edged lower from 18.09x to 17.80x, suggesting a modest reset in valuation expectations.
Disclaimer
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