Pernod Ricard Shares Gain 3.56% but Remain 25% Below Last Year's Level
Pernod Ricard's stock rises 3.56% this Wednesday morning to €65.20, amidst a strong Parisian market surge following the announcement of a ceasefire between Washington and Tehran. However, the stock is still down 25% over the year and significantly below its medium and long-term moving averages.
Market Reaction to Ceasefire and Economic Prospects
This morning, Pernod Ricard's stock price advanced to €65.20, up from €62.96 the previous day, buoyed by a sharp rebound in the CAC 40, which gained 4.28% during the session. The overnight announcement of a ceasefire between the United States and Iran and the prospect of reopening the Strait of Hormuz have fostered a relaxation across all European markets. The SBF 120 also saw a session gain of 4.20%. For the spirits group, the anticipated drop in energy prices — with Brent crude falling 15% post-agreement, dipping below $100 — could reduce logistics and transportation costs, significant expenses for a company operating globally. However, the stock still shows a negative quarterly performance, down 9.42% over three months, and the upcoming release of its Q3 2025-2026 revenue on April 16th could provide more visibility on the company's commercial trajectory.
Revised Analyst Expectations for Pernod Ricard
Significantly, two research firms revised their price targets on Pernod Ricard yesterday. Kepler Cheuvreux lowered its target from €120 to €100 while maintaining a 'buy' recommendation, suggesting a theoretical potential of over 50% compared to the current price. HSBC, on the other hand, reduced its target from €86 to €72, maintaining a 'hold' rating, which represents an approximate 10% difference from this morning's level. Technically, the stock is trading at €65.20, still well below its 50-day moving average of €73.81, indicating a still dominant medium-term bearish trend. The RSI stands at 37, close to the oversold zone, reflecting the significant selling pressure accumulated in recent months. The major support identified is at €59.94, a floor the stock has not touched in recent sessions. While today's rebound offers some respite, the chart configuration does not yet indicate a confirmed turnaround.
