Analyst Note
| Philip Gorham, CFA, FRM |Carlsberg reported strong results in the second quarter of 2021, beating our revenue growth expectations for the second consecutive quarter, and allowing management to again raise its full-year guidance. We are raising our fair value estimate to DKK 880 per share from DKK 810 to account for the time value of money (DKK 10 of the change), for a higher full-year revenue growth rate in the full year (DKK 40) and for a marginally faster stage II EBI growth rate (DKK 20). Despite the strong start to the year, we still think the market is more than pricing in Carlsberg's rebound from COVID-19, and we feel the current market valuation does not reflect Carlsberg's weaker competitive positioning relative to some of its larger peers.