Pernod Ricard Shares Tumble Following Unexpected Downgrade

Shares of French spirits giant Pernod Ricard experienced a significant sell-off yesterday. The decline was triggered by a surprise downgrade from investment bank Morgan Stanley, which shifted its rating from “Equalweight” to “Underweight.” Concurrently, the bank reduced its price target for the stock from ?90 to ?85. During the trading session, the equity fell by as much as 2.7 percent, ultimately closing at ?92 per share.

The downgrade is rooted in a notably more pessimistic outlook for Pernod Ricard’s 2026 fiscal year. Morgan Stanley’s analysts now project a 2 percent decline in organic sales, a stark contrast to the broader market consensus which anticipated a far more modest dip of 0.3 percent. This downward revision is primarily attributed to ongoing inventory adjustments in the company’s key... Read more...