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Deutsche Bank issued a Catalyst Buy recommendation on Carlsberg A/S ( OTCPK:CABGY ) ( OTCPK:CABJF ) on Wednesday.
The company issued a buy recommendation ahead of Carlsberg’s ( OTCPK:CABGY ) first-half results on August 14.
Analyst Mitch Collett: “Carlsberg shares The company’s ratings were significantly downgraded after the company announced on June 21 that it was considering a takeover bid for Britvic. Therefore, we believe solid 1Q24 results and guidance hikes are likely to drive positive stock price reaction. Carlsberg has traded -11% over the past few months and currently trades at 13.8x 2025 P/E, a 27% discount to Europe’s Staples, based on our estimates.
In terms of valuation, applying Carlsberg’s ( OTCPK:CABGY ) five-year average P/E ratio of 19.4x to Deutsche Bank’s 2027 earnings per share implies a share price of DKK 1,645, or 90% upside for the beer stock. Carlsberg ( OTCPK:CABGY ) stock also has a free cash flow yield of 7.3% in fiscal 2025, Collett said.
Earlier this week, London-listed soft drinks maker Britvic (OTCQX:BTVCY) accepted a sweet £3.28 billion ($4.2 billion) takeover bid from Carlberg (OTCPK:CABGY). CEO of Carlsberg (OTCPK:CABGY) said: “With this transaction, we are combining Britvic’s high-quality soft drinks portfolio with Carlsberg’s strong beer portfolio and go-to-market capabilities, creating an enhanced market presence in the UK and Western Europe. claim.
