While confirming its 'hold' recommendation on Pernod Ricard, Stifel has lowered its price target by 8% to 170 euros, in the wake of a reduction of around 6% in its earnings forecasts for the French spirits group.

The broker expects a 4.4% drop in sales in the second accounting quarter and a 50 basis point contraction in organic EBIT margin in the first half of 2023-24, but believes that full-year results 'should look less ugly'.

'The European spirits sector continues to lack short-term catalysts. In an uncertain macro and consumer context, comparison bases and a potential end to destocking are the few supporting factors identified', he continues.

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