Heineken: Berenberg raises to 'buy'
(CercleFinance.com) - Berenberg on Tuesday raised its rating on Dutch beer giant Heineken from "sell" to "buy", saying the company will eventually gain from its defensive profile.
"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 Heineken has, as do Pernod Ricard, Carlsberg and Campari.
Berenberg has raised its target price on the stock from 80 euros to 90.8 euros.
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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.
"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 Heineken has, as do Pernod Ricard, Carlsberg and Campari.
Berenberg has raised its target price on the stock from 80 euros to 90.8 euros.
Copyright (c) 2020 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.