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Pernod Ricard is once again in the crosshairs of the ongoing trade spat between the United States and the European Union. Despite the ongoing risks, the stock's nearly 70% decline over the past couple of years cannot be justified by the lower margins alone. The dividend seems to be at risk if profitability headwinds persist, but that's already accounted for.

Pernod Ricard is trading at its lowest valuation in nearly 20 years, offering a compelling entry point. PRNDY's 7.4% dividend yield is well-covered by AEPS, supported by BBB+ credit and conservative leverage below 40%. Growth headwinds are cyclical, not structural; recent results show resilience outside the US and China, with strong premium brand performance.

An Indian court rejected ​French giant Pernod ‌Ricard's plea seeking permission to sell ​its products ​in New Delhi on ⁠Friday, a ​key showcase market ​from where it has been out for the ​last three ​years.

The deal between Brown-Forman and Pernod Ricard is off the table, but that is not the end of it. Another bidder has recently stepped in, and the chances of some form of a deal remain. The issue around a target price as Brown-Forman trades at record-low levels is likely to be the cause of Pernod Ricard walking away.

The French spirits company and the Jack Daniel's maker announced in March that they were discussing a potential combination