Heineken (HEIA: NA) NV Receives Price Target Adjustment from Deutsche Bank Analyst Mitch Collett - Buy Rating Maintained
Deutsche Bank has updated its outlook on Heineken (HEIA: NA) NV (HEINY), with analyst Mitch Collett lowering the price target to EUR95.00 from EUR99.00, while keeping a Buy rating on the stock. The adjustment reflects a more cautious view on the company's performance in Europe and the Asia-Pacific region, offset by a more stable outlook for the AME&EE and Americas regions.
Heineken is set to report its third-quarter sales for 2024 on October 23 with Deutsche Bank forecasting organic volume growth at 1.0% and organic revenue growth at 3.0% for the quarter, along with a price/mix increase of 2.0%. Expectations are for the company to affirm its full-year 2024 organic operating profit growth guidance of 4-8%, with Deutsche Bank's estimate at 7.7%, higher than the Vuma consensus of 7.0%.
Deutsche Bank has revised its estimates, lowering the expected organic volume growth for the current quarter from 1.5% to 1.0%, and organic revenue growth from 3.8% to 3.0%, with price/mix now expected at 2.0% instead of the previous 2.2%. For the full year 2024, the bank now projects organic volume growth of 1.2% and organic revenue growth of 4.6%.
The bank's future outlook for Heineken beyond 2024 has also been adjusted slightly, with reductions in organic growth assumptions for the upcoming years. This, coupled with updated foreign exchange rates, has led to a decrease in Deutsche Bank's earnings per share (EPS) estimates for Heineken for 2024, 2025, and 2026.
In conclusion, this adjustment in Heineken's outlook by Deutsche Bank may impact the stock's performance in the short and long term. Investors should consider the revised estimates and the bank's cautious stance on the company's future growth prospects when making investment decisions.
