On Wednesday, Deutsche Bank reaffirmed its Buy rating and €108.00 price target for Heineken (AS:HEIN) NV (HEIA:NA) (OTC: HEINY (OTC:HEINY)), ahead of the company's first-half 2024 results expected to be released on July 29.
The bank's analysis anticipates Heineken to demonstrate solid performance in the upcoming report, with predicted organic volume growth of 4.3% for the second quarter. Additionally, the expectation for organic revenue growth stands at 8.1%, with a price/mix contribution of 3.7%.
The forecast for Heineken's first half of the year includes an organic operating profit growth of 17.5%. The adjusted operating profit is projected to reach €2,262 million, while the adjusted net profit is estimated at €1,289 million. These figures underscore a positive outlook for the Dutch brewer's financial health during the first six months of 2024.
Furthermore, Deutsche Bank expects Heineken to update its full-year 2024 guidance for organic operating profit growth to the upper half of the current forecast, which ranges from low to high single-digit figures. The bank's projection is set at 10.2%, slightly below the Bloomberg consensus of 10.9%.
Investors and market watchers are likely to keep a close eye on Heineken's upcoming earnings report, which will provide a clearer picture of the company's performance and its alignment with Deutsche Bank's positive expectations. The bank's maintained Buy rating and price target reflect confidence in Heineken's market position and growth trajectory for the remainder of the year.
In other recent news, Heineken NV has been making waves with its strong first-half performance, as highlighted by Jefferies, which maintained a positive stance on the company.
The endorsement came after Heineken's CEO reported encouraging trade performance, a stabilizing market in Vietnam, and increasing volumes in Europe. These developments contribute to a robust first half of the year for Heineken, following challenging years. Jefferies also noted Heineken's favorable position compared to other global staples, with potential for growth in the company's share price.
On the other hand, RBC Capital has adjusted its price target for Heineken to EUR77.00, up from EUR75.00, but maintained an Underperform rating. This adjustment follows Heineken's first-quarter sales that exceeded expectations, largely due to technical factors. Despite the sales beat, RBC Capital remains skeptical about the sustainability of Heineken's price/mix growth due to broadly declining inflation.
These are just some of the recent developments concerning Heineken.
InvestingPro Insights
As we approach Heineken NV's (OTC: HEINY) first-half 2024 earnings release, current metrics from InvestingPro paint a comprehensive picture of the company's financial standing. Heineken's market capitalization stands robust at $56.41 billion, with a trailing P/E ratio of 17.76, indicating a potentially favorable valuation relative to earnings. Moreover, the company's revenue growth over the last twelve months as of Q4 2023 has been positive at 5.72%, reinforcing the solid performance Deutsche Bank anticipates in their report.
InvestingPro Tips highlight Heineken's consistency in maintaining dividend payments for 33 consecutive years, which may appeal to income-focused investors, especially with a dividend yield of 2.43% as of the most recent data. Additionally, despite short-term obligations exceeding liquid assets, analysts remain confident in the company's profitability for the year. For those seeking deeper insights and additional tips, InvestingPro provides a wealth of analysis, including the fact that there are 5 more tips available for Heineken on the platform. Investors might consider this information when evaluating the company's potential, especially when using the promo code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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