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Opportunities and Risks in Global Beer from Rising Competition

 Ed Mundy/Elsa Hannar, European Beverages Analysts

Jefferies believes the benefit to global beer stocks from outsized margin expansion and cheap debt is drawing to a close. Heightened competition in pursuit of growth is a natural consequence of this, which in turn could lead to pressure on margins. The debate in beer will shift from margin expansion to top line growth as the key driver of earnings. Jefferies upgrades Heineken and Carlsberg to Buy; downgrades AB InBev to Underperform and initiates on Royal Unibrew with an Underperform. FULL REPORT