Pernod Ricard Shares Bounce Nearly 3%, Among Top Three in CAC 40
The French spirits giant is moving forward in mid-morning trading on the Paris stock exchange, within a CAC 40 that is markedly on the rise. The rebound occurs despite an unfavorable report published the previous day by an analysis firm, while short positions remain high in the capital.
A 2.81% Rebound Propels the Stock to Third Place in the CAC 40
Pernod Ricard's stock is up 2.81% at €63.72 in mid-morning trading, marking the third largest increase in the CAC 40, behind Carrefour (+4.62%) and ArcelorMittal (+3.50%). The stock is approaching its short-term moving averages, with the MM20 at €63.61 and the MM50 at €63.55, both narrowly missed by less than 0.3%. However, the MM200 remains significantly higher at €73.85, a gap of nearly 14% that underscores the underlying heaviness of the case. The RSI at 41 remains in the neutral zone, without signaling any excess. The rebound should also be viewed in the context of a negative annual performance exceeding 28%. This progress follows an unfavorable note from BNP Paribas Exane, which raised its price target from €61.00 to €62.50, while maintaining an 'Underperform' rating. The new target price is below the current stock level, indicating a potential downside of about 2% according to this analyst's opinion. Today's session, therefore, contradicts the caution expressed by this firm in the short term.
High Short Positions and a Still Burdensome Sectoral Background
In terms of capital, declared bearish pressure remains significant. According to recorded statements, five funds cumulatively hold 3.55% of the capital sold short, a level that has increased by 0.27 points over thirty days. This exposure reflects a persistent mistrust by some institutional investors, without recent dynamics signaling a sudden acceleration: the position is settling at a high plateau rather than spiraling. This is a point to monitor, without drawing isolated conclusions about the trajectory of the stock. The sectoral context does not help. According to the 2024 FEVS report, cognac exports fell by 10.9% in value, and all French spirits declined by 6.5%, a structural environment that weighs on exporters like the group. Today's rebound of Rémy Cointreau, also up 2.74%, suggests a temporarily improved disposition towards the sector. Technically, the sustainable crossing of the MM50 at €63.55 remains the immediate hurdle to watch, with the next resistance forming at €66.24.
