Pernod Ricard share loses nearly 9% in one week and approaches its support level
Pernod Ricard continues to suffer the consequences following the publication of its annual results in late August, unable to find a floor in an already downward-trending market. The stock ranks among the biggest decliners of the CAC 40 at the start of September, as two brokerages revised their price targets downward yesterday.
A decline that extends a black week and approaches support at €62.18
Pernod Ricard falls 2.57% to €62.84 in trading, bringing its weekly decline to nearly 9%. The share is now trading close to its support level at €62.18, representing a gap of barely 1%: a level that has not yet been breached but is facing mounting pressure with each trading session. Over one year, the loss exceeds 35%, illustrating the scale of shareholder value destruction from its peaks.
The market context is not helping matters: the CAC 40 declines 0.41% in trading, the VIX surges more than 10% intraday, signaling renewed nervousness in markets. The three moving averages for the share (20-day MA at €67.86, 50-day MA at €66.11 and 200-day MA at €69.75) are all significantly above the current price, confirming a bearish trend established across all timeframes. The RSI at 41 does not yet signal clear oversold conditions, which leaves the door open for a test of support without an immediate technical rebound signal.
Two price target revisions yesterday amplify pressure on analyst consensus
Mediobanca and HSBC both lowered their price targets yesterday, Monday August 31st. Mediobanca cut its target from €88 to €80, with a "market perform" rating, while HSBC lowered its target from €74 to €70, maintaining a "hold" rating. These two revisions follow 2025/2026 annual results published on August 27th, which showed organic revenue and current operating income declines, hurt by weakness in American and Chinese markets.
Even at €70 (the lower of the two targets), analysts still see potential for a rebound of approximately 11% from the current price, reflecting a significant gap between broker valuations and market reality.
