GREECE: Brokers lower view on CCHBC

By just-drinks.com editorial team | 19 June 2008

Coca-Cola Hellenic (CCHBC) has seen its coverage lowered by two brokers, after it adjusted its near-term outlook last week.

The Greece-based bottler saw Lehman Brothers reduce its target price to EUR24 from EUR30 per share earlier this week, while maintaining an 'equal weight' rating. Merrill Lynch, meanwhile, lowered its target for CCHBC to EUR25 from EUR31.5, but held an 'underperform' rating for the company.

Lehman Brothers said that it was bringing coverage on CCHBC back in line, following earlier "supernormal" growth. CCHBC will see its top line growth slip but remain strong going forward, especially in Eastern Europe. Merrill Lynch, meanwhile, said it was surprised by CCHBC's recent management downgrade, which indicated the level of impact food inflation costs were having on consumers on consumers in emerging markets.

Last week, CCHBC revised down volume growth for the first half of 2008 to around 6% from the previous estimate of 7%, while EBIT growth is expected to be between 5% and 7% from between 11% and 13%.

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