Street Calls of the Week
Investing.com - Deutsche Bank upgraded Royal Unibrew (CSE:RBREW) (OTC:ROYUF) from Hold to Buy and raised its price target to DKK620.00 from DKK575.00.
The upgrade comes as Deutsche Bank views Royal Unibrew’s growth targets of 6-8% organic EBIT growth and 10-14% EPS growth as an attractive proposition in what it describes as an "increasingly growth challenged Beverages sector."
Deutsche Bank expects the company to deliver organic EBIT growth of approximately 7% for fiscal years 2026-2028, which would position Royal Unibrew toward the top of the sector in performance.
The bank highlighted Royal Unibrew’s multi-beverage model as particularly attractive compared to other European beverage companies, noting that non-alcoholic beverages account for approximately 54% of revenue while no/low sugar products represent 62% of the company’s soft drinks volumes.
Deutsche Bank also pointed to Royal Unibrew’s strategic focus on energy drinks, ready-to-drink beverages, and premium offerings as key drivers for superior growth, which it believes should help drive a re-rating of shares back toward historic multiples.
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