Euro Bev Alc 3Q26 review: plenty of valuation support and solid EPS growth (esp for the brewers) but no re-rating, yet

After a positive performance in 1H, the sector saw mixed returns through Q3, ending up +5%, slightly behind the market (+7%) but 8%pts better than staples (which were -3%) in 9M 2026. Sector valuation remains at all-time lows, even though EPS momentum is starting to pick up, especially for the brewers (and Campari). Rémy Cointreau, AB InBev and Campari posted strong returns in 9M 2026. At these levels, we think all the stocks are attractively priced, mostly trading around 9x-11x NTM+1 earnings (apart from ABI, CPR & RCO), well below the European market (14x) and far below their historical premium. We continue to prefer beer over spirits, as the critical US spirits market continues to be weak. Within beer, our preferred name is Carlsberg;