Carlsberg: Things are going to get worse before they get better. Downgrade to sell.

We are downgrading the stock to Sell from Neutral and set a new fair price of DKK485 which is 18% below the current share price.  We are doing this after reviewing the company’s outlook and management’s statements on profitability which are well below where the market forecasts are.  We are lowering our 2015 and 2016 operating profit forecasts by 12% and 8% and lower our fair value of the company by 7% to DKK485 from DKK519. And our operating profit forecasts for 2015 and 2016 are 6% and 11% respectively below consensus.

For more information, please contact marketing@bryangarnier.com