BUZZ-Berenberg ups Danish brewers to 'buy' as soft drink growth prospects fizz

Reuters03-16 21:42
BUZZ-Berenberg ups Danish brewers to 'buy' as soft drink growth prospects fizz

** Berenberg upgrades Danish brewers Carlsberg CARLb.CO and Royal Unibrew RBREW.CO to "buy" from "hold", citing their respective pivots towards non-alcoholic drinks

** In its view, non-alcoholic categories offer a more optimistic growth outlook than beer, with growth within European soft drinks "more structural than cyclical"

** It expects Carlsberg's acquisition of Britvic to bring diversification in growth and value creation sources, with Pepsi partnership offering additional opportunities

** It raises Carlsberg's PT by 5.5% to DKK 1,090

** The brokerage lifts Royal Unibrew's PT by 14% to DKK 681, noting the brewer's path to margin recovery and a shift to categories like energy and low-sugar beverages

** It sees Royal Unibrew's ambition to be the "partner of choice" in the Nordics in the category as supported by the group's enhanced distribution capabilities in the region

(Reporting by Marta Frackowiak)

((marta.frackowiak@thomsonreuters.com))

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