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- Deutsche Bank issues a negative catalyst call on Heineken N.V. (OTCQX:HEINY) on its view that downside risk from higher inputs costs is not reflected in the current share price following a period of outperformance of 7% over the last month.
- Analyst Mitch Collett: "We see near-term risk given uncertainty around pricing and input costs and therefore initiate a catalyst sell rating. Heineken trades on a CY23 P/E of 23.1x, a 2% discount to European Consumer Staples (ex Tobacco) on 23.6x. The shares also trade on a CY23 EV/EBITDA of 12.7x vs European Consumer Staples (ex Tobacco) on 14.8x. Heineken therefore trades at an 18% / 21% premium to ABI/Carlsberg on a CY23 P/E and a 19%/12% premium to ABI/Carlsberg on a CY23 EV/EBITDA."
- Adding it all up, Deutsche Bank sees enough downside risk from higher input costs to warrant a Sell rating on the beer giant.
- Shares of Heineken (OTCQX:HEINY) are down 2.22% in Amsterdam trading.
- The Seeking Alpha Quant Rating on Heineken (OTCQX:HEINY) is Neutral.