ABSOLUT AND STOLI “UNCERTAINTY” WEIGH ON PERNOD
In a note by UBS analyst Melissa Earlam, Pernod management confirmed trading has started strong for the 2008 fiscal year helped by Asia and the Americas. The company reportedly believes its top 15 brands can continue 3-4% growth above group sales. As a result, she expects strong Q1 sales on Oct. 30 thanks to easy year on year comps.
Meanwhile, uncertainty concerning V&S and Stoli continue to surround the company.
“Pernod’s shares are weighed on by uncertainty about an acquisition of V&S (offering significant cost savings) or Stoli (offering premium vol growth). Pernod is committed to value creation (it beat its target of covering WACC in Year 3 for both Allied and Seagram); we believe this target remains a benchmark,” she continued.
Meanwhile, uncertainty concerning V&S and Stoli continue to surround the company.
“Pernod’s shares are weighed on by uncertainty about an acquisition of V&S (offering significant cost savings) or Stoli (offering premium vol growth). Pernod is committed to value creation (it beat its target of covering WACC in Year 3 for both Allied and Seagram); we believe this target remains a benchmark,” she continued.
posted at 4:25 PM
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