Royal Unibrew serves 'value for money' - Jyske starts with 'buy'

Royal Unibrew A/S

25/08/2022 13:04

** Jyske Bank initiates coverage of Royal Unibrew  RBREW.CO 
with a "buy" recommendation and target price of DKK 725, vs DKK
584.6 at Wednesday's close, saying the Danish brewer offers
"value for money"
    ** The broker says rising raw material and energy prices
result in a lower share price and "somewhat fair" valuation for
the company
    ** However, since the brewer diligently passes the costs on
to customers, Jyske sees a manageable pressure to 2023 earnings
and says high inflation shouldn't cause significant downtrade
    ** In a longer term, the group's multi-beverage model, focus
on M&A and high-growth categories, such as low-sugar and
alcohol-free products, ensure its attractive growth and earnings
compared to competitors, the broker says
    ** Out of 13 analysts that cover Royal Unibrew, eight rate
the stock "strong buy"/"buy" and five "hold" - Refinitiv data
    ** The stock has dropped more than 20% YTD



 (Reporting by Jacob Rasmussen)
 ((jacob.rasmussen@thomsonreuters.com))