Denmark: Carlsberg target price cut to 540 dkr, 'reduce' reiterated

Shares in Carlsberg were flat at 600.00 dkr while the OMXC20 index gained 2.26 points or 0.46 pct to 490.55, according to AFX News Limited, April 23.

"Despite the (cost saving) excellence programmes and ongoing restructurings in Western Europe, our analysis of the competitors shows that (Carlsberg) is far from the competitors' earnings capacity," the bank said.

It added that rising prices of raw materials as well as the smoking ban in public places in many European countries may hit the brewery's earnings. Carlsberg's positive newsflow will continue, with focus on continuing restructurings, growth in holding company BBH, and good earnings prospects at the group's property development division, but its share price implies that Carlsberg is trading "close to a best case scenario", Gudme Raaschou said.