Carlsberg A/S, the Nordic region’s biggest brewer, rose the most among Copenhagen’s benchmark stocks today after Goldman Sachs Group Inc. said lower costs and improving European economies will support the stock.
Carlsberg advanced as much as 2.5 percent, the most since Aug. 13. The stock rose 2 percent to 581.50 kroner as of 10:02 a.m. in the Danish capital, making it the biggest winner in the Nasdaq OMX Copenhagen 20 Index. Trading volume in the company’s shares was 39 percent of the three-month daily average.
Carlsberg Chief Executive Officer Joergen Buhl Rasmussen said last month the brewer is facing challenges in Europe while its outlook is more positive on Asia as the Copenhagen-based brewer published second-quarter profits that missed analyst estimates. Goldman raised its recommendation on the stock to neutral from sell, according to a note distributed today.
Carlsberg will benefit from “more favorable input costs, improving European macro-economic conditions and ongoing cost saving measures,” Goldman analysts, including Mitch Collett, said in the note.
Goldman increased its Carlsberg share price estimate to 554 kroner from 475 kroner, data compiled by Bloomberg showed. That compares with an average target of 606 kroner among 25 analysts covering the stock, according to the data.
Separately, Carlsberg said it expects the 5 percent organic sales growth it had in the first half in China to be sustained through the rest of the year, according to an interview with Soren Ravn, who heads the brewer’s business in the Greater China region.