CCU Forecast


Bullish Case: CCU could rebound due to improved earnings growth projections, bolstered by strong market demand and potential cost-cutting measures. A rebound from current lows would stimulate buying interest.


Bearish Case: Economic headwinds, rising input costs, and increased competition could continue to pressure CCU's margins, leading to further declines in stock performance, especially against its historical averages.


Potential Outcomes:

1. Earnings miss (20% chance);

2. Unexpected economic recovery (15% chance);

3. Increased input costs (25% chance);

4. New product line success (10% chance);

5. Dividend cut (5% chance);

6. Major acquisition or merger (8% chance);

7. Regulatory changes (5% chance);

8. Market correction (10% chance).


Trading Oracle: Trade a bull call spread using the CCU 01/17/2025 12.50 C at a $0.75 ask price. High implied volatility suggests a long volatility strategy is optimal. Position for a 6-month horizon to capture upside if CCU recovers.


July 25, 2024


Compania Cervecerias Unidas S.A. Forecast

CCU      Compania Cervecerias Unidas S.A.











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