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Investing.com - Bernstein lowered its price target on Carlsberg (CSE:CARLb) (CARLB:DC) to DKK1,260.00 from DKK1,270.00 while maintaining an Outperform rating on the stock. Despite the slight reduction, InvestingPro data shows the company’s stock has surged over 53% in the past six months, reflecting strong market confidence. The beverage giant maintains a "GOOD" financial health score and has consistently paid dividends for 25 consecutive years.
The price target reduction comes as Bernstein trimmed volume assumptions for Asia due to continued weakness in the Chinese market, though the firm noted China is showing "signs of life" with easier comparisons expected in the second half of the year.
Bernstein also lowered price-mix estimates in Europe, citing price cuts in France, and adjusted estimates for Britvic (LON:BVIC) profit contribution based on company comments.
The firm reduced its earnings per share estimates by 0.8% for fiscal year 2025 and 1.3% for fiscal year 2026, while modeling organic EBIT growth of 3.5% for FY25, within Carlsberg’s guidance range of 1%-5%.
Carlsberg is scheduled to report its financial results on August 14, with consensus estimates currently projecting 4.1% growth.
In other recent news, Carlsberg A/S has been the focus of analyst discussions, highlighting its earnings and revenue prospects. Citi has reiterated its Buy rating for Carlsberg, emphasizing favorable weather conditions in Western Europe that could boost performance in the second quarter. The firm anticipates strong profit contributions from both Carlsberg’s core operations and its recently acquired Britvic business, particularly in the latter half of the year. Citi also notes potential upside to the company’s earnings guidance if favorable weather continues, along with possible benefits from Britvic’s full-year contribution and asset disposals.
Conversely, HSBC has downgraded Carlsberg from Buy to Hold, adjusting its price target to DKK910. The downgrade reflects a reassessment of Carlsberg’s financial outlook, particularly with slower growth expectations in Asia impacting the fiscal year 2025 sales growth forecast. HSBC analysts have also reduced revenue projections due to lower contributions from Britvic and increased foreign exchange headwinds. Despite these challenges, HSBC acknowledges Carlsberg’s strengths, such as its minimal exposure to the U.S. market and tariffs, but sees limited upside potential given the stock’s performance this year.
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