Brazil: Analysts about InBevs boosting stake in Quinsa
InBev's purchase of the remaining shares of South American brewer Quinsa is "a good deal strategically," says ING's Gerard Rijk, according to Dow Jones Newswires. Quinsa is the largest brewer in Argentina, Bolivia, Paraguay and Uruguay, and it also bottles Pepsi in Argentina and Uruguay, which gives InBev useful market flexibility. "Price wise it's not too expensive, but we still have to see how they will finance it," says Rijk. Keeps hold rating and EUR40 target price. InBev -0.2% to EUR38.13, in negative market.
Inbev's operations in Brazil are likely to produce strong growth, says Collins Stewart. Analyst Rob Mann feels "much more comfortable with the top line performance to be expected in Brazil, both in beer and soft drinks." Adds "there are good reasons to be optimistic for the balance of the year." Keeps buy rating, EUR47 target. Shares +1.2% at EUR38.64. (JRB)