Heineken (HEINY) , the Dutch beer titan, and U.K. oil company BP (BP) are on a list compiled by CNBC of five European stocks touted by different analysts.
The other three companies are German logistics company Deutsche Post (DPSGY) , French utility Engie (ENGIY) and French oil company TotalEnergies (TTE).
Heineken Seen Benefiting From Higher Prices
Credit Suisse includes Heineken, the No. 2 beer company in the world, as one of its highest-conviction stock picks for this year, CNBC reports.
Heineken will likely have an increase in price mix (which accounts for different pricing in different areas) of 8% for 2021 and 2022, said Credit Suisse analyst Richard Kersley.
That would beat analysts’ consensus forecast of a 6% rise in 2021 and a 4.6% increase in 2022.
Kersley also estimates Heineken’s earnings per share for this year will top analysts’ prediction by 16%. Rebounds in Europe and the Asia Pacific, higher prices in emerging markets and favorable premium trends will boost the company, he said.
BP: New Projects, Cost Control, Clean-Energy Effort
As for BP, Goldman Sachs analyst Michele Della Vigna sees strength throughout the oil sector, forecasting industrywide earnings per share that best the analyst consensus by 44%, CNBC reports.
BP has an impressive pipeline of fresh oil and gas projects, and it’s making strides on cost-cutting and clean energy, she said. Cash-flow growth should fund dividends and more share buybacks, Della Vigna said.
The London oil giant ranks among the top companies in the industry for returning cash to investors, she said.
Morningstar analyst Allen Good isn't as optimistic about BP.
"BP is transitioning from an integrated oil company to an integrated energy company to achieve its emission reduction targets and position itself for the energy transition while growing earnings and improving returns," he wrote in a commentary.
"While the strategy addresses emissions and obsolescence risk it holds execution and acquisition risk."
Good puts fair value for BP at $30. The American depositary receipts at last check were trading up 2.5% near $33.
