INVESTEC has delivered an upbeat assessment of Pernod Ricard's long-term prospects in China.
The analyst said conditions for the Chivas Brothers owner are "finally appearing to stabilise" in the world's second biggest economy, after government-led austerity measures introduced in 2012 hit luxury spirits sales.
It said the easing of headwinds in China, alongside the distiller's "leadership position in dark spirits", have paved the way for a return to high single or low double digit percentage growth in the market from 2017.
The analyst raised its target price for Pernod Ricard shares to €125, similar to its rating to Diageo.
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