The Investment Doctor Investing Group Leader

Summary

Heineken maintains robust cash flows and global brand strength despite declining Western beer consumption.

HEINY is on track to meet 2026 targets, aided by €400–500M in cost savings and steady share buybacks.

Underlying EPS for FY 2027 is projected at €4.6, implying a fair value of €70–72 per share at 15x earnings.

I view HEINY as a speculative buy at current levels, favoring entry via out-of-the-money put options.

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Introduction

As the average beer consumption per capita in the Western world continues to decrease, beer companies have to be creative. Some buy new brands that appeal to the younger population; others focus on their core strength.…