Heineken: RBC downgrades to 'underperform

(CercleFinance.com) - RBC announced on Tuesday that it had downgraded its opinion on Heineken shares from 'in line with sector performance' to 'underperform', while reducing its target price from 85 to 75 euros.


In a note published this morning, the Canadian broker expressed regret at the Dutch brewer's persistent refusal to increase its marketing expenditure, which it considered detrimental to the brand at a time of rising beer prices.

In his view, the Group's performance remains conditional on increased investment, without which sales volumes, margins and cash flow will remain under pressure.

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