UBS has raised its recommendation on Carlsberg from 'sell' to 'neutral', with a price target raised from DKK 790 to DKK 990, a new target that offers 6% upside potential for the Scandinavian brewer's shares.
Higher investments in marketing and sales, financed by supply chain efficiency, promote a better growth profile and greater income statement flexibility", the broker highlights in its note.
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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%).