Oddo BHF maintains its 'neutral' rating on Pernod Ricard shares, with an unchanged target price of 145 euros.

At 15x PE NTM, the valuation of the share is at a historically low point for a group with quality fundamentals in a buoyant sector", stresses the analyst.

Oddo BHF still expects a 14% drop in EPS 23/24th. We are slightly revising our forecasts for FY 24/25, on which the sell-side consensus is still too optimistic in our view', he adds.

The broker is also aware that the medium-term question remains that of the degree of confidence in the assumption of a return to growth next year.

This prospect could prompt some investors to consider the current PE level as a potential entry point", he says, while reminding us that caution is still called for, particularly in view of the almost systematic slump in expectations over the past few months.


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