Heineken: stock drops after analyst's downgrade

(CercleFinance.com) - Shares of Heineken are down over 2% on Tuesday after a broker downgraded the stock, citing cost inflation in the brewing sector.


Germany's Berenberg cut its rating on the shares from "hold" to "sell," and reduced its target price from 82.3 euros to 73 euros.

This cut came on the back on estimate cuts for all the brewers in its coverage, to incorporate the latest inflation pressures, it said.

"After several years of low (or even negative) input cost inflation, beer companies will face a more difficult environment in 2019," Berenberg wrote in a note to clients.

Heineken's shares, which have fallen by almost 6% since the start of the year, are currently down 2% at 81.8 euros on Euronext Amsterdam on Tuesday morning.

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