The Netherlands: UBS downgrades Heineken to neutral

Dutch beer group Heineken was downgraded to neutral from buy at UBS, MarketWatch communicated on October, 12.

UBS said it is taking profits on the company that has outperformed the European market by 17%. There is only 8% upside implied by its 12-month price target and 4% expected excess return, analysts commented.

UBS said it sees top line recovery for Heineken to be more muted than for peers, given that 65% of its earnings before interest and taxes come from mature markets, while expectations are that its savings plan - total cost management - is progressing, but the market may be a bit overoptimistic.

14 October, 2009