Heineken: Credit Suisse raises target price

(CercleFinance.com) - Credit Suisse reiterates its "outperform" rating on Heineken shares, having increased its corresponding target price to 107 euros (from 103 euros), after it increased its earnings assumptions for the Dutch brewer.


The broker believes that Heineken can achieve an operating margin of 19% by 2023, 200 basis points above its target of 17%, supported by its more aggressive price and mix outlook than both consensus and management expectations.

Conservatively assuming that half of this upside potential will be reinvested, Credit Suisse forecasts an operating margin of 18% and is therefore increasing its 2023 EPS estimate by around 3%, to a level that is now 12% above the consensus.


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