Pernod Ricard Shares Fall 2.89% at Close Following Several Recommendation Revisions
Pernod Ricard's stock closed the session on Monday, December 22, at 74.00 euros, down 2.89% from the previous day's trading at 76.20 euros. The stock has been underperforming with a significant yearly decline amidst operational challenges, including weak demand in China and stock adjustments in the USA.
Current Trading Session
Pernod Ricard's stock ended Monday's trading session at 74.00 euros, marking a decrease of 2.89% from the previous day's price of 76.20 euros. Trading volumes remained low, with only 0.25% of the capital traded, indicating investor caution during the end-of-year period. Over the past week, the stock has shown a consistent performance drop of 2.89%, highlighting ongoing vulnerability. Over the longer term, the decline has been severe, with a three-month drop of 16.74% and a yearly fall of 31.51%, making Pernod Ricard one of the weakest performers in the CAC 40 for 2025. This annual underperformance comes amid operational challenges such as weak demand in China, stock adjustments in the United States, and macroeconomic headwinds. The stock is currently trading near its technical support level of 73.32 euros, a critical level monitored by traders, while the major resistance is at 84.36 euros.
Recent Analyst Revisions
The decline in the stock occurred a few days after a series of target price revisions by several investment banks between December 17 and 18. Berenberg lowered its target from 114 euros to 99.10 euros while maintaining a buy recommendation, whereas Deutsche Bank reduced its target from 80 euros to 75 euros with a hold opinion. Morgan Stanley also lowered its target from 84 euros to 80 euros while maintaining an underweight recommendation. Concurrently, UBS initiated neutral coverage with a target of 75 euros. These revisions contrast with the more optimistic stance of Barclays, which on December 11 upgraded its recommendation to overweight with a revised target of 103 euros from 102 euros previously, representing a potential upside of 39% from the current price. Barclays believes that market concerns about American volumes and tariff risks are overly reflected in the valuation. This divergence of views among analysts reflects the uncertainties surrounding the group's ability to improve its performance in strategic markets.
Technical Analysis
The technical analysis of the stock reveals a still deteriorated situation despite some attempts at recovery. The price is significantly below its reference moving averages, at 81.27 euros for the 50-day moving average and 89.73 euros for the 200-day moving average, confirming a solidly established bearish trend. The Relative Strength Index (RSI) stands at 39, positioning the stock in a low neutral zone, without a clear bullish signal but gradually moving away from the oversold zone. The MACD indicator shows a slight encouraging signal with a MACD line at minus 1.22 rising above its signal line at minus 1.53, generating a positive histogram of 0.31, suggesting the beginning of a reversal in the bearish momentum, although confirmation is still needed. The group is going through a challenging period with a revenue decline of 14.3% in the first quarter of the fiscal year 2025-2026, impacted by difficulties in China and the United States. The management maintains its medium-term objectives with an average annual organic growth between 3 and 6% for the fiscal years 2027 to 2029, while describing the current year as a transitional exercise with an improvement expected in the second half. The next financial meeting is scheduled for February 19, 2026, with the publication of the half-year revenue and results.
