UBS picks its European beverage favourites for Q3
BUZZ-UBS picks its European beverage favourites for Q3 ** Going into Q3 results, UBS says investors are likely to favour European beverage stocks with company-specific growth drivers amid weak demand and rising costs
** "We think investors will re-rate the more idiosyncratic growth stories coming out of Q3 and into year end," it says in a note
** It says Campari CPRI.MI, Coca-Cola HBC CCH.BN, as well as Anheuser-Busch InBev ABI.BR and Carlsberg CARLb.CO have the potential to make that list, though for the two latter adds Q3 may not be the catalyst
** Among brewers it prefers Heineken HEIO.AS for Q3, pointing to volume upside as it sees Q3 consolidated volumes up 2.1% y/y
** Campari is its top pick among spirits on accelerating growth driven by product innovation and geographical expansion
** It deems bottlers as the clearest beneficiaries of the European weather, forecasting both CCEP CCEPC.L and CCH delivering solid volume growth in Q3
COMPANY | Q3 UBS organic revenue growth estimate | % difference to consensus |
Remy Cointreau RCOP.PA | +6.5% | +130bps |
Heineken HEIO.AS | +3.4% | +30bps |
Campari CPRI.MI | +3.8% | +60bps |
Carlsberg CARLb.CO | +3.0% | -10bps |
CCEP CCEPC.L | +5.4% | +80bps |
Coca-Cola HBC CCH.BN | +8.5% | +120bps |
Diageo DGE.L | -1.4% | -60bps |
(Reporting by Mirko Miorelli)