Guggenheim picks favorite beverage stocks for 2022, names Vita Coco 'best idea'

The Vita Coco

04/01/2022 12:55

** Guggenheim analysts expect a "rotation back to beverage
stocks", especially non-alcoholic names, in 2022 after their
relative underperformance last year
    ** Stronger pricing power, larger exposure to emerging
markets and sales at restaurants and bars rebounding to
pre-pandemic levels by the summer should aid recovery -
Guggenheim
    ** The brokerage prefers PepsiCo  PEP.O  to Coca-Cola  KO.N 
and highlights profitable coconut-water maker Vita Coco  COCO.O 
as its 'best idea' in the sector
    ** Guggenheim also says Oatly's  OTLY.O  shares halving
since going public presents an attractive entry point given its
expectations for co to post strong growth through fiscal 2023
    ** The brokerage, however, expects shares of beer makers
including Anheuser-Busch InBev  BUD.N  and Molson Coors  TAP.N 
to be volatile this year as new COVID-19 waves affect consumer
behavior
    ** Expects Boston Beer  SAM.N , which has a limited presence
in bars and pubs, to be not so volatile
    
  Company    Guggenheim   Average     Stock's
             's rating     Street       2021
                           rating    performanc
                                         e
 Vita Coco      Buy         Buy          NA
   COCO.O                            
   Molson       Buy         Hold         3%
   Coors                             
   TAP.N                             
 Coca-Cola      Buy         Buy          8%
   KO.N                              
  PepsiCo       Buy         Buy         17%
   PEP.O                             
   Boston       Buy         Buy         -49%
    Beer                             
   SAM.N                             
   Oatly        Buy         Buy          NA
  OTLY.O                             
  Monster       Buy         Buy          4%
  Beverage                           
  MNST.O                             
 Anheuser-B     Buy         Buy         -13%
 usch InBev                          
   BUD.N                             
 Constellat   Neutral       Buy         15%
 ion Brands                          
   STZ.N                             
  National      Sell        Sell        13%
  Beverage                           
  FIZZ.O                             
 
 (Reporting by Praveen Paramasivam)
 ((Praveen.Paramasivam@thomsonreuters.com;))