In uncertain environment, Jefferies prefers brewers among beverage makers
28/04/2025 09:04
** Jefferies cuts earnings expectations across the beverage sector, adjusting for slower growth due to trade wars, tariffs and foreign exchange effects ** The broker sees a -1% impact on sales and -2.5% on EBIT for beer, saying it is more resilient given its affordability and no risk of destocking ** Its top picks include Anheuser-Busch InBev ABI.BR, Heineken HEIO.AS, and Carlsberg CARLb.CO ** For spirits, Jefferies sees a sales impact of -2% and EBIT of -5%, adding these are riskier investments, as valuations dropped after COVID-19 ** It notes, however, that spirits stocks could offer an attractive entry point if recession and tariffs risks avert, as their valuations already reflect a double dip from the pandemic and trade war ** The broker sees soft drinks as a safer investment and expects the bottlers to outperform if the economy deteriorates, given their lower tariff exposure and strong business models PT changes:
| COMPANY | RATING | NEW PT | OLD PT |
|---|---|---|---|
| Anheuser-Busch InBev ABI.BR | buy | EUR 70.00 | EUR 75.00 |
| Anheuser-Busch InBev BUD.N | buy | $80.00 | $79.00 |
| Carlsberg CARLb.CO | buy | DKK 1,030.00 | DKK 1,050.00 |
| Coca-Cola HBC CCH.L | buy | 4,400.00p | 3,750.00p |
| Diageo | buy | $131.00 | $141.00 |
| Diageo PLC DGE.L | buy | 2,500.00p | 2,800.00p |
| Heineken HEIO.AS | buy | EUR 100.00 | EUR 105.00 |
| Pernod Ricard PERP.PA | buy | EUR 120.00 | EUR 140.00 |
| Rémy Cointreau RCOP.PA | buy | EUR 70.00 | EUR 80.00 |