HSBC downgrades Compania Cervecerias Unidas stock rating on weak demand creation
HSBC downgraded Compania Cervecerias Unidas (CCU) stock rating to "Reduce" due to weak demand creation. The company's current stock price is $11.24, down 11% year-to-date, although it is still considered undervalued by InvestingPro analysis. HSBC analyst Sorabh Daga pointed out that CCU struggles in creating future demand for its core product, particularly in Chile where beer volume growth has been minimal at 1.1% compound annual growth rate over nine years.
The firm also noted CCU's loss of premium volume market share to Corona, lagging digital capabilities for point-of-sale execution, and unsuccessful capital deployments in Argentina and Colombia.
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