(News Bulletin 247) – RBC analysts said last night that they had reconsidered their decision to downgrade their opinion on Heineken shares, acknowledging that they had based their position on an erroneous basis of comparison.
The research firm yesterday reduced its opinion on the title from ‘performance in line with the sector’ to ‘underperformance’, saying that the brewer tended to neglect its investments in its high-end brands compared to AB InBev and Carlsberg.
After a discussion with Heineken, RBC admits that this comparison does not provide a complete picture of the situation due to the disparities existing in the financial communications of the three companies.
“Unlike its competitors, Heineken does not include personnel costs and impairment charges in its marketing and sales expenses, which invalidates our previous comparison which related marketing expenses to turnover,” explains Royal Bank. of Canada.
Accordingly, RBC raises its opinion on the title to ‘in line performance’ against ‘underperformance’ with a price target raised from 78 to 87 euros.
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