CCU downgraded to Underweight from Overweight at JPMorgan

JPMorgan double downgraded CCU to Underweight from Overweight with a price target of $10, down from $21. The firm cut EBITDA estimates for this and next year by 40% and 36%, respectively, following a “significant” 70% miss in Q2 earnings. The company’s earnings visibility ahead is low given volatile currency and still weak consumption in Chile and Argentina, the analyst tells investors in a research note. JPMorgan thinks a recovery towards normalized margins in the future should be much slower than initially anticipated, likely implying “subpar” earnings growth and margins for the next two years.