Proactive Investors - Beer is best when deciding which beverage companies to invest in, according to analysts, as brewers face plentiful scope for growth next year.
According to Citigroup (NYSE:C), costs should decrease for brewers heading into the new year, thanks to subsiding commodity prices since 2022.
Earnings could well be driven for some of Europe’s major brewers as a result, with Citi suggesting many had taken an overly cautious stance on the sector.
“Brewer estimates have already been pared-back, leaving ample scope for upside surprise,” the bank said.
Heineken NV was backed by Citi as its “top pick,” while Carslberg was also tipped to see future share price growth.
Addressing recent upward movement in commodity prices, Citi remained confident that trends should remain below those seen after the start of the Ukraine war in 2022.
In fact Citi took a positive stance on the sector as a whole, adding: “We are structurally positive on all the major beer stocks.”