Robotaxi, ride-hail US boom is a boost for European spirits makers, Barclays says

An expected robotaxi and ride-hail boom in the U.S. may increase the largest global alcohol market by about $42 billions over the next decade, to the benefit of European spirits makers, Barclays says

It upgrades Jameson Irish Whiskey, Absolut Vodka and Malibu rum maker Pernod Ricard PERP.PA to "overweight" from "equal-weight" and lifts price targets of peers Anheuser-Busch InBev ABI.BR, Campari CPRI.MI and Diageo DGE.L by 7%-9%

"There is an established relationship between ride-hailing and alcohol consumption that is little known in the market," the brokerage says

It cites a 2021 Journal of Health Economics study that showed a 5.4% increase in total alcoholic drinks consumption associated with UberX UBER.N ride-hailing use

It says the U.S. exposure to the robotaxi market will dramatically accelerate the adoption of ride-hailing services there, but other countries will follow

It sees a 39% upside to the Pernod Ricard stock, saying it is undervalued after a couple of years of underperformance, reduced exposure to China, more optimistic outlook in India and low expectations in the U.S.

As of Wednesday's closing, Pernod Ricard shares have dropped 33% YTD