Carlsberg (Buy, TP: DKK1040.00) - Q4: new headwinds, but low season
Apart from still-expected strong performances in China and Russia, new Covid-19 restrictions across most of Europe are set to create headwinds in Q4 and Q1. However, these are seasonally low quarters in profitability, while vaccine rollouts improve the outlook for H2 2021. We expect the 2021 guidance to be wide and conservative, and believe capital allocation could prove to be a positive catalyst. We reiterate our BUY, but have cut our target price to DKK1,040 (1,052).Carlsberg is engaged in the production and sale of beer and other beverages. Co.'s brewing operations are concentrated in Northern and Western Europe, Eastern Europe and Asia, while markets outside these regions are serviced through exports and production under license. Co.'s other beverages include soft drinks, water and cider. In addition to beverage activities, Co. is also engaged in real estate.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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