UK: SABMiller Plc upgraded from "neutral" to "buy"
Analysts at Merrill Lynch upgraded SABMiller Plc from "neutral" to "buy," following a 20% drop in share price since April. The target price is set to 1160p, Merrill Lynch posted on June 13.
In a research note published this morning, the analysts mention that the upgrade in the rating is based on valuation, following the recent decline in the company's share price. Although there are short-term risks at SABMiller, the company's business portfolio offer value for the medium-to-long term, the analysts add. Merrill Lynch expects the company's profitability to improve, following the competitive summer season.
"While short-term risks remain, we believe SABMiller's portfolio of businesses offers medium to long-term value," it says. Brokerage expects US profitability to improve after a competitive summer. "We do not expect any trading surprises from South Africa or Europe," it adds. "Its African, Chinese, Russian and Indian positions offer long-term growth potential." Shares trade -2.6% at 926p.
UBS upgraded SABMiller to buy from neutral on June 13, lifted target to 1,120p from 1,100p, saying the stock is "oversold," UBS noted the stock is off 18% since the beginning of May and that only 13% of this can be explained by the movement in exchange and risk rates. It acknowledged growth is moderating at the group, but still saw EPS growth of 12% during '06-'11 "in line with the sector but ahead of the European market." Shares closed Monday at 951p.
Regresar
E-malt.com, la fuente de información global para los profesionales de la industria cervecera y de malteado. Los boletines quincenales de E-malt.com incluyen las últimas noticias de la industria, estadísticas en gráficos y tablas, precios mundiales de cebada y malta, y otra información relevante. Haga clic aquí para obtener acceso completo a E-malt.com. Si usted es un cliente de Castle Malting, puede obtener acceso gratuito al sitio web y publicaciones de E-malt.com. Contáctenos para obtener más información en marketing@castlemalting.com.
