Pernod Ricard Shares Drop 1.41% to €62.78, Approaching a Key Support Level
In early afternoon trading, shares of the French spirits group fell 1.41% to €62.78, as the CAC 40 index declined by 1.2%. The stock is trading near its lower Bollinger band, in a Paris market weighed down by luxury stocks. Over the past year, the decline has reached 35.06%.
A Stock Close to Its Support, Below All Moving Averages
The Pernod Ricard stock price is at the lower end of its Bollinger band (lower boundary at €62.19), just over 4% above the support level of €59.94. The RSI stands at 42, remaining neutral with no clear signal. The stock is trading below its 20-day moving average (€65.28, a gap of -3.83%), its 50-day moving average (€67.20), and its 200-day moving average (€80.13), indicating a negative underlying trend. Over three months, the decline has reached 24.42%.
The index context does not favor the stock. The CAC 40 is down 1.2% during the session, dragged lower by major luxury stocks: LVMH is down 4.37%, Kering 3.46%, Hermès 2.86%. Pernod Ricard ranks 28th in the index, far from the top five largest declines. Net short positions reported to the AMF amount to 3.04% of the capital, up 1.11 points over 30 days, with AQR Capital Management leading at 1.32%.
Compressed Valuation, Next Meeting Scheduled for Late August
Based on the consensus of 17 analysts recorded at the beginning of May, the stock is trading at approximately 10.9 times current year earnings and 10.6 times next year's earnings, compared to an average of 17.7 times for the Consumer Staples sector. The expected growth in earnings per share from one year to the next is 2.3%. The valuation gap with the sector remains significant.
The sectoral backdrop remains unfavorable for French spirit exporters. The Federation of Wine and Spirits Exporters has reported a 10.9% decline in the value of cognac exports for 2024, and a 6.5% decline for all spirits. As a reminder, during the mid-April quarterly revenue announcement, Pernod Ricard had already lowered its target. The next key date on the financial calendar is a North America conference on May 28, followed by the annual revenue and earnings figures for 2025/2026 on August 27. In the short term, the stock's behavior in relation to the €59.94 support level remains a factual benchmark to watch.
