Analyst Zheng Feng Chee of DBS maintained a Buy rating on Heineken NV (0O26 – Research Report), reducing the price target to €96.00.
Zheng Feng Chee has given his Buy rating due to a combination of factors that highlight Heineken NV’s strong market position and growth potential. Despite a slight decline in total beer volume due to seasonal impacts, the premium and Heineken brand beers have shown resilience, with notable year-over-year growth. This performance is supported by successful brand extensions such as Heineken Zero and Heineken Silver, which cater to evolving consumer preferences and have achieved significant market penetration and growth.
Additionally, Heineken’s commitment to long-term growth through increased marketing and digital investments is expected to enhance brand equity and operational efficiencies. The company’s guidance for operating profit growth, which surpasses consensus expectations, further underscores its robust financial outlook. While potential risks exist in certain markets, the overall strategic initiatives and financial projections provide a solid foundation for the Buy rating.
In another report released on April 17, UBS also maintained a Buy rating on the stock with a €93.00 price target.