Sequans Communications reports second quarter revenue flat at $8.1 million
On Wednesday, Berenberg initiated coverage on Heineken NV (HEIA:NA) (OTC: OTC:HEINY) shares with a Buy rating and a price target of EUR 99.20. The firm highlighted the success of Heineken (AS:HEIN)’s EverGreen strategy, which has been instrumental in driving the company’s earnings growth. In 2023, Heineken achieved an organic growth of 5.5% in its top line, followed by 5.0% in 2024. The underlying operating profit saw an increase of 1.7% in 2023 and a more significant rise of 8.2% in 2024.
Berenberg’s analysts pointed to Heineken’s management guidance, which anticipates organic operating profit growth of between 4-8% for the fiscal year 2025 (FY25E). Despite these positive growth figures, Heineken’s shares have experienced a devaluation, now trading at multiples last seen during the 2009 financial crisis.
The firm also noted the share buyback program that Heineken announced alongside its fiscal year 2024 results. The program, which plans to repurchase EUR 1.5 billion worth of shares over the next two years, is expected to be beneficial for shareholders. This comes at a time when Heineken’s shares are trading at a projected FY25E enterprise value to EBITDA (EV/EBITDA) multiple of just 8.4 times.
Berenberg’s analysis suggests that the current low valuation of Heineken’s shares presents an attractive opportunity for investors. The buyback program is seen as a strategic move to capitalize on this undervaluation, potentially leading to accretive benefits for shareholders.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.