MEXICO: Modelo price target raised
Grupo Modelo has had its price target upped. Merrill Lynch increased its target for the Mexican brewer yesterday (31 March) in anticipation of cost reduction and efficiency improvement initiatives.
Merrill Lynch raised Modelo's 12-month price objective to MXN40 per share from MXN35.50. On Wednesday (30 March) Modelo's shares closed at MXN32.20.
"Our recent work argues that the degree of efficiency opportunity at Modelo could far exceed our earlier expectations, and could surprise many market observers," Merrill Lynch said yesterday. The brewer could save more than US$300m solely in labour productivity, it added.
"In addition to the divestiture of unproductive assets like company's eight soccer and baseball teams and nine regional stadiums/arenas, we believe labour and operational opportunities to be highly significant," Merrill Lynch said.
Sectors: Beer & cider
- Five ways small brands can beat big players
- Will Coca-Cola Co’s Dunkin’ Donuts move pay off?
- Heineken's Q3 2016 results - Preview
- Interview, Bulldog Gin CEO Anshuman Vohra, Pt II
- Analysts upbeat on Pernod Ricard's US success
- Diageo weathers Thailand alcohol ban
- SWA's David Frost to leave for foreign office role
- Stock Spirits appointments provoke investor unrest
- Seedlip eyes global growth with export deal
- Altria raises Anheuser-Busch InBev holding
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Wine Market 2016-2020
- Global RTD insights - market forecasts, product innovation and consumer trends