Pernod Ricard Shares Rebound 1.43% Despite Two Target Price Downgrades
Pernod Ricard is gaining ground this Tuesday afternoon, showing a rebound of 1.43% to 63.92 euros after a last close at 63.02 euros. This recovery occurs amidst the simultaneous publication of two target price revisions by analysis firms, while the stock has fallen nearly 28% over the year.
Analyst Recommendations Adjusted
This Tuesday, April 7, two adjustments to analyst recommendations for Pernod Ricard were published. Kepler Cheuvreux reduced its price target from 120 to 100 euros, while maintaining a 'buy' recommendation. At this level, the gap with the current price of 63.92 euros suggests a revaluation potential of over 56%. Meanwhile, HSBC revised its target from 86 to 72 euros, keeping a 'hold' rating. This target indicates a potential rise of about 12.6% from the mid-session level. The two banks thus display very different views on the trajectory of the spirits group: one sees the stock as significantly undervalued, while the other adopts a more cautious stance. These revisions come as the next market update is scheduled for April 16, with the publication of the third-quarter revenue for the fiscal year 2025-2026.
Tuesday's Rebound Does Not Alter Technical Outlook
Tuesday's rebound is not sufficient to alter the deteriorated technical configuration of the stock. The price of 63.92 euros remains significantly below the 50-day moving average, set at 74.08 euros, indicating a still well-entrenched medium-term downward trend. The gap with the 200-day moving average (83.10 euros) confirms the magnitude of the downturn experienced over recent months, with a decline of 12.87% over three months. The RSI, a momentum indicator, is at 36, close to the conventionally set oversold zone at 30. Moreover, the price is positioned at 32% of the Bollinger band, i.e., in the lower part of the channel, between the lower bound at 59.12 euros and the upper bound at 74.01 euros. The nearest technical support is at 59.94 euros. On the Paris market, the CAC 40 is trading around 7,964.70 points, nearly stable (+0.03%). Comparable consumer stocks show contrasting trajectories: L'Oréal is down 0.38% while Unilever falls by 1.79%, making Pernod Ricard's rebound one of the most notable movements in the sector.
