Compania Cervecerias Unidas (NYSE:CCU) Earns Reduce Rating from HSBC

Key Points

• HSBC reaffirmed its “reduce” rating on Compania Cervecerias Unidas and cut its price target from $15 to $10, implying 11.13% downside from the stock’s $11.25 price.
• Analyst sentiment is broadly negative: MarketBeat reports a consensus rating of “Strong Sell”, with one Hold and three Sell ratings and an average target price of $11.50.
• CCU’s latest quarter met adjusted earnings expectations at a loss of $0.12 per share, while revenue of $659.17 million exceeded the $641.90 million consensus estimate.

Compania Cervecerias Unidas (NYSE:CCU - Get Free Report)'s stock had its "reduce" rating reaffirmed by research analysts at HSBC in a research note issued on Monday, Benzinga reports. They presently have a $10.00 price objective on the stock, down from their previous price objective of $15.00. HSBC's price objective points to a potential downside of 11.13% from the company's current price.

Other equities analysts also recently issued reports about the company. Weiss Ratings downgraded Compania Cervecerias Unidas from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, August 11th. Zacks Research raised shares of Compania Cervecerias Unidas from a "strong sell" rating to a "hold" rating in a research note on Monday, June 15th. Wall Street Zen downgraded shares of Compania Cervecerias Unidas from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, JPMorgan Chase & Co. reduced their price objective on Compania Cervecerias Unidas from $14.00 to $13.00 and set an "underweight" rating on the stock in a research note on Monday, August 31st. One research analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Strong Sell" and a consensus target price of $11.50.

Compania Cervecerias Unidas Stock Performance

NYSE:CCU opened at $11.25 on Monday. The firm has a market capitalization of $2.08 billion, a PE ratio of 18.15, a P/E/G ratio of 1.11 and a beta of 0.53. The stock has a 50-day simple moving average of $11.72 and a two-hundred day simple moving average of $11.62. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.17 and a current ratio of 1.84. Compania Cervecerias Unidas has a 52-week low of $10.71 and a 52-week high of $15.36.

Compania Cervecerias Unidas (NYSE:CCU - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.12) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.12). The business had revenue of $659.17 million during the quarter, compared to analyst estimates of $641.90 million. Compania Cervecerias Unidas had a return on equity of 6.77% and a net margin of 3.71%. Analysts forecast that Compania Cervecerias Unidas will post 0.69 EPS for the current year.

Hedge Funds Weigh In On Compania Cervecerias Unidas

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Engineers Gate Manager LP bought a new position in shares of Compania Cervecerias Unidas in the second quarter worth about $169,000. GAMMA Investing LLC lifted its position in Compania Cervecerias Unidas by 65.0% during the 2nd quarter. GAMMA Investing LLC now owns 3,857 shares of the company's stock worth $43,000 after acquiring an additional 1,520 shares during the period. Bank of America Corp DE boosted its holdings in Compania Cervecerias Unidas by 5.4% during the first quarter. Bank of America Corp DE now owns 329,197 shares of the company's stock worth $3,736,000 after buying an additional 16,834 shares in the last quarter. Royal Bank of Canada boosted its stake in shares of Compania Cervecerias Unidas by 7.1% during the first quarter. Royal Bank of Canada now owns 70,005 shares of the company's stock valued at $795,000 after acquiring an additional 4,616 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of Compania Cervecerias Unidas by 4.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 183,897 shares of the company's stock valued at $2,087,000 after purchasing an additional 8,258 shares during the last quarter. 24.07% of the stock is owned by institutional investors.

Compania Cervecerias Unidas Company Profile

Compañía Cervecerías Unidas SA (CCU) is a Chile-based beverage company founded in 1902. The company produces, markets and distributes a broad portfolio of alcoholic and non-alcoholic beverages, with beer representing one of its core businesses.

CCU's products include beers, soft drinks, bottled water, juices, sports and energy drinks, wines, spirits and pisco. Its beer portfolio includes brands such as Cristal, Escudo and Kunstmann in Chile, along with brands sold in Argentina and other markets.

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