DEO - Pernod Ricard: Double-Digit Annual Return Still In Sight
(We previously wrote about Pernod Ricard, Diageo and Rémy Cointreau as "Blue Sky Capital")
Introduction
Since our initial Buy rating ("Pernod Ricard: Long-Term Emerging Market Compounder") in August 2019, Pernod Ricard (PDRDF) (referred here as "PR") shares have returned a small 3.4% (including €1.94 in dividends), underperforming the 15%+ return in the Stoxx 600 index over this period:
With the coronavirus outbreak in China and FY20H1 results on Thursday, we re-examine our investment case on PR, and conclude that it is still a Buy opportunity, with an approx. 10% annual return