Pernod Ricard's share price continued to fall on Tuesday on the Paris Bourse, still penalized by the downgrading of HSBC's analysts' recommendation to 'light'.

At 11:00 a.m., the spirits giant's shares were down 0.2%, while the CAC 40 index was up 0.4% at the same time.

Pernod had already stumbled 1.4% yesterday in the wake of HSBC's downgrade, which considers that consensus estimates do not reflect the harsh reality of the current market environment.

With regard to the 2023/2024 financial year, we believe that the company will find it difficult to achieve consensus sales forecasts in view of the weakness of the US market and an unfavorable base effect in Europe linked to the exit from the Russian market", explains the research firm.

Analysts also consider that the group's ambition to improve margins will be severely tested in the current economic climate.

We still like Pernod's portfolio of brands, but we see downside potential in the months ahead", warns HSBC.

Its opinion has therefore been changed from "hold" to "lighten up", with a price target reduced from 185 to 142 euros, suggesting a downside potential of around 10%.

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