GS ups Royal Unibrew on unappreciated margin recovery

Royal Unibrew A/S

27/03/2025 08:23

** Goldman Sachs initiates coverage of Royal Unibrew RBREW.CO with "buy" rating, target price DKK 630, as it sees margin recovery for the Danish brewer as unappreciated

** The brokerage expects margins to recover to 2015-2016 levels of 15.5% by 2027, as the company drives efficiencies and improves performances in its acquired businesses

** Better profitability in the Nordics and accretive bolt-ons could further boost earnings, it adds

** Any significant improvement in consumer sentiment, especially in Finland, could drive margins toward peak 2018-2020 levels, the broker adds

** GS says Royal Unibrew, with a 10.4% organic EBIT CAGR for 2025-2027, has among the fastest profit growth in the broker's European staples coverage

** The stock is up 4.3% at 0809 GMT

 (Reporting by Marta Frackowiak; Editing by Amanda Cooper)

 ((marta.frackowiak@thomsonreuters.com))