Deutsche Bank upgrades Anheuser-Busch InBev, Campari on beer, soft drinks outlook

Deutsche Bank upgraded Anheuser-Busch InBev and Campari Group to "buy" from "hold" and raised their price targets to €79 and €7.1 respectively, citing selective optimism on the beer sector and constructive outlook for soft drinks in the European beverages industry. The broker also raised ABI's target from €72 and Campari's from €6.2.

However, Deutsche Bank maintained Carlsberg's "buy" rating but lowered its target to DKK1,160 from DKK1,220. Coca-Cola Europacific Partners and Coca-Cola Hellenic remained at "buy" with their targets raised to $117 and 8,725 pence respectively, demonstrating confidence in the soft drinks sector. Diageo, Heineken, Pernod Ricard, and Royal Unibrew retained "hold" ratings with their targets adjusted downwards.

Deutsche Bank analyst Mitch Collett attributed the sector's bifurcation to structural challenges, cyclical headwinds, and idiosyncratic factors. He expressed caution on spirits due to competition from ready-to-drink products, while soft drinks were seen as a resilient segment with growth prospects in developed markets despite health concerns and shifting consumer preferences.