Berenberg ups C&C Group to 'hold', lowers TP
Analysts at Berenberg slashed their target price on brewer C&C Group on Thursday but upped their rating on the group from 'sell' to 'hold'.
Beverages
22,467.12
17:10 19/04/24
C&C Group (CDI)
160.80p
16:35 19/04/24
FTSE 250
19,391.30
17:09 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
Berenberg highlighted that C&C Group's share price had fallen by roughly 50% from its highs in early January since the government shut down the UK's bars, restaurants and pubs to help manage the effects of Covid-19, a move the analysts said was "understandable" given that the on-trade represented around 80% of the firm's net sales.
"With the brewer withdrawing mid-term guidance and taking immediate actions in the debt market, investor focus has unsurprisingly been on short-term liquidity requirements," said Berenberg.
However, the German bank's underlying view on the firm was unchanged and said it thinks C&C's funding levels should remain "sufficient", despite undoubted immediate-term stresses.
"Our monthly cash flow model shows that, in the worst month of H1 2021E, net debt peaks at c€305.2m, which is still within the c€550m of immediate-term liquidity (across a range of facilities) that C&C has at its disposal," concluded Berenberg.