Carlsberg: Berenberg upgrades to 'buy'
(CercleFinance.com) - Shares in Danish brewer Carlsberg are up 1.
2% on Tuesday after Berenberg said the company will eventually gain from its defensive profile, with the broker upgrading the stock to "buy".
"The alcoholic beverages sector is highly exposed to the disruptions that the hospitality sector is suffering due to COVID-19," Berenberg analysts write in a note to clients.
"We assume that the peak of the disruption will be in calendar Q2 2020 with a gradual return to "a new normal" by calendar Q4 2020," they add.
Analysts say the most sensible option in this context is to selectively buy companies with defensive and geographically diversified businesses, which it believes Carlsberg has, as do Pernod Ricard, Heineken and Campari.
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