Carlsberg A/S declined the most among Copenhagen’s benchmark stocks today after JP Morgan Cazenove said the brewer may struggle to meet its guidance.
Carlsberg slid as much as 1.3 percent, the most since July 3. The stock was down 1.2 percent at 538 kroner as of 11:35 a.m. in the Danish capital, the biggest decrease among stocks on the Nasdaq OMX Copenhagen 20 Index. Trading volume was 27 percent of the three-month daily average.
Carlsberg has targeted full-year profit before interest and tax of around 10 billion kroner ($1.7 billion). Signs of shrinking sales in Russia, its biggest market, have called the guidance into question and weighed on the stock, which has lost 2.9 percent this year, compared with an 8 percent gain in the Stoxx 600 Food and Beverage Index. Second-quarter results due Aug. 21 probably won’t ease pressure, JP Morgan said.
“We expect Carlsberg’s second-quarter results to leave it requiring an improved performance” in the second half of the year, Matthew Webb, a JP Morgan analyst, said today in a note to clients. “We see this as achievable, but not conservative.”
The Russian market continues to pose a challenge to the Copenhagen brewer, said Webb, who left unchanged his neutral recommendation and 545-krone target price. “We retain our long-standing concerns about the Russian beer market, which accounts for almost 40 percent of Carlsberg’s group EBIT,” he said.