Carlsberg: RBC downgrades to 'sector perform'
(CercleFinance.com) - RBC Capital Markets has downgraded Carlsberg to "sector perform" from "outperform" on Tuesday, citing the shares' recent outperformance.
RBC said the downgrade is no reflection of the Danish brewer's business, which continues to "perform admirably," but is rather due to the shares reaching its target price.
The move comes after the stock has outperformed the MSCI Europe Consumer Staples index by respectively 10% and 27% over the last one and three years, the broker said in a note to clients.
"We think there's a risk that sales growth will be temporarily restrained given the drop in marketing investment last year and EPS growth will be constrained as marketing investment is restored," RBC also wrote.
RBC Capital raised its target price for the stock to 1,000 Danish kronor, from 960 kronor previously.
Its shares were trading down 0.3% in late morning trading on the Copenhagen Stock Exchange this Tuesday.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
RBC said the downgrade is no reflection of the Danish brewer's business, which continues to "perform admirably," but is rather due to the shares reaching its target price.
The move comes after the stock has outperformed the MSCI Europe Consumer Staples index by respectively 10% and 27% over the last one and three years, the broker said in a note to clients.
"We think there's a risk that sales growth will be temporarily restrained given the drop in marketing investment last year and EPS growth will be constrained as marketing investment is restored," RBC also wrote.
RBC Capital raised its target price for the stock to 1,000 Danish kronor, from 960 kronor previously.
Its shares were trading down 0.3% in late morning trading on the Copenhagen Stock Exchange this Tuesday.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.