DENMARK: Carlsberg share coverage upped

By just-drinks.com editorial team | 9 April 2008

Carlsberg has had its coverage raised.

Morgan Stanley said today (9 April) that it was upping its recommendation on the brewer to 'overweight' from 'equal weight'. The broker has set a target price for Carlsberg's shares of DKK750, ex-rights.

The brewer is best placed to benefit from a more robust performance by the world's beer makers than many expect, Morgan Stanley said.

The market is discounting expectations for rising commodity prices and tough competition, while it sees emerging market growth and free cash flow as attractive, the broker noted.

Earlier this year, the Denmark-based brewer said that net sales in 2007 were up by 9% on 2006, coming in at DKK44.75bn (US$9.43bn). Operating profit climbed to DKK5.26bn from DKK4.05bn, with net profit increasing to DKK2.30bn from DKK1.88bn.

Sectors: Beer & cider

Companies: Carlsberg