On June 30, Budweiser APAC fell 4.55% in regular trading, trading at HK$6.1/share, with turnover of HK$49.45 million. The decline was triggered by JP Morgan issuing a research note that significantly cut the target price from HK$8.2 to HK$6.7, while maintaining a Neutral rating.
JP Morgan forecasts that Budweiser APAC's Q2 performance will be weaker than expected, projecting organic revenue and EBITDA to decline 1% and 8% year-over-year respectively, consistent with Q1 trends. The bank cited poor weather conditions and slower-than-expected restaurant channel recovery as key headwinds dragging China market performance, with both sales volume and average selling prices expected to decline. Additionally, World Cup promotional spending and new product launches are further pressuring margins. JP Morgan cut its EPS forecasts for the next three years by 9%, projecting full-year organic sales flat and EBITDA down 4% year-over-year.
The downgrade follows similar moves by Goldman Sachs and Macquarie, which recently cut their target prices to HK$7.6 and HK$10.8 respectively. The broader brewers sector also traded lower, with Tsingtao Brewery down 3.32% and China Resources Beer down 3.46%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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