Pernod Ricard SA

RI: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€599.00	Ktjzq	Jtggdtx

Raising Our FVE of Pernod on Strong First-Half Performance in Fiscal 2023

Philip Gorham

Feb 17, 2023

Pernod Ricard continued the trend of beverage large caps reporting better-than-expected performance, with Europe being the standout region in the first half of fiscal 2023. We are raising our medium-term margin assumption and our fair value estimate to EUR 185 per share from EUR 167 because of the valuation impact of the strong performance of the year, and because we think medium-term margins may be structurally higher than we had previously assumed. Nevertheless, with the stock trading at 20 times fiscal 2024 earnings, we believe Pernod is currently slightly overvalued.

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