In a beverage market that doesn’t offer a lot of obvious bargains, I like to look for company-specific drivers and stories that could help separate a company from the pack, and I think Heineken (OTCQX:HEINY) has that. Heineken was an early mover in shifting its mix up-market (premiumization), which is a key factor in offsetting declining beer consumption in developed markets. At the same time, Heineken has created an attractive long-term growth footprint in significant emerging markets like Vietnam that can help drive greater long-term growth. Last and by no means least, Heineken has not yet really prioritized optimal operating efficiency, and I believe this is a significant potential margin driver.
I’d describe Heineken’s valuation as “okay” more than “compelling”, but I do like the business and the potential for both superior long-term growth and improving margins. With a mid-to-high single-digit total annualized return potential, this is a name I’d consider if you want exposure to this sector.
Follow this link to the full article:
Heineken Is Leveraged To Growth Markets, And Has Above-Average Margin Leverage Potential
No comments:
Post a Comment