Jyske Bank downgrades Royal Unibrew, says long-term goals disappoint

Royal Unibrew A/S

01/03/2024 10:47

** Jyske Bank downgrades Danish brewer and beverage group
Royal Unibrew  RBREW.CO  to "hold" from "buy", citing
"disappointing" long-term targets
    ** Royal Unibrew shares slide 0.7%, extending Thursday's
losses when it fell more than 4% on 2023 revenue below
expectations, and higher-than-expected forecast for financial
costs in 2024
    ** "We struggle to find arguments for Unibrew to trade at a
significant premium to Carlsberg  CARLb.CO , as growth
expectations are relatively similar", the broker says
    ** The company's new long-term financial target is to
increase EBIT organically by an average 6-8% per year, against
20-21% it targeted in the past
    ** Jyske Bank considers the 2024 outlook as "slightly
conservative", adding the company must regain investor
confidence in 2024

 (Reporting by Agnieszka Oleńska)
 ((Agnieszka.Olenska@thomsonreuters.com;))