Pernod Ricard, Remy Cointreau fall on JPMorgan downgrade

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Pernod Ricard, Remy Cointreau fall on JPMorgan downgrade

By Geoffrey Smith -- Shares in French drinks groups Pernod Ricard (EPA: PERP ) and Remy Cointreau (EPA: RCOP ) fell on Monday, after analysts at JPMorgan sounded a note of caution about the outlook for sales in the crucial U.S. market.

JPMorgan analysts said they would take a "conservative" view for U.S. sales this year, given the ongoing squeeze on real incomes through high inflation and the depletion of pandemic-era savings. 

They lowered their recommendation on Pernod Ricard, the maker of Havana Club rum, Absolut vodka and Jameson's whisky, to neutral from overweight and also put the stock on negative catalyst watch.

The analysts also kept their underweight rating on Remy Cointreau, which had warned late last year that it expected a "normalization" of consumption trends in 2023 after a sharp rebound in the wake of COVID-19 restrictions being lifted. 

By 05:00 ET (09:00 GMT), Pernod Ricard stock was down 1.3% in Paris, while Remy Cointreau stock was down 1.8%. The benchmark CAC 40 index , by contrast, was up 0.9% on a morning when stock markets broadly were breathing a sigh of relief at the lack of financial sector drama over the weekend.

Diageo (LON: DGE ) stock was up 0.1% in London, while Campari (BIT: CPRI ) stock was up 0.3% in Milan.

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