Barclays reaffirms its 'overweight' recommendation on Carlsberg while lowering its target price from DKK 1116 to DKK 1090, expecting a solid fourth quarter but cautious 2024 guidance from the Scandinavian brewer.
Given our cautious stance on the Chinese spirits market, we are keeping a close eye on Carlsberg's local beer exposure, but believe that the risk/reward ratio remains positive for the time being", the broker believes.
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Carlsberg A/S is one of the world's leading beer producers. Net sales break down by activity as follows:
- beer production and sales: 101 million hectoliters sold in 2023 primarily under the Carlsberg and Tuborg brands;
- production, bottling, and distribution of non-alcoholic beverages: carbonated beverages, energy drinks, and mineral waters (24.1 million hectoliters sold in 2022).
At the end of 2023, the group had 71 breweries located in Denmark, in the United Kingdom (3), in Poland (3), in Germany (3), in Western Europe (6), in China (26), in Asia (14), and in Central/Eastern Europe (15).
Net sales are distributed geographically as follows: Western Europe (50.7%), Asia (31.7%), Eastern and Central Europe (17.6%).