UK: Morgan Stanley lifts SABMiller estimates

Morgan Stanley lifts SABMiller (SAB.JO) 06 EPS estimate to $1.29 from $1.31 and for 07 to $1.48 from $1.50, Dow Jones Newswires posted on March 27. "Near-term news flow on volumes for SAB is unlikely to be particularly positive," MS says. "However, confidence on the margin story in South Africa in F2006, as well as a greater-than-expected contribution from Bavaria in F2006 and F2007, makes us optimistic on scope for market upgrades when the company reports results." Maintains overweight rating. Shares -0.1% at 1119p.

On March 30 Dow Jones said SAB Miller (SAB.JO) +2.9% at 1,150p. Analyst says it's taking heart from a UK press report where the company stated it isn't looking for further acquisitions in China. "Investors are impressed with the company's restraint," he says. "It's easy for companies to get carried away in this sort of environment but SAB have done well to step back." Additionally, he points to the extension of the company's offer for Union de Cervecerias Peruanas (BACKUSI1.VL), a move which should allow SAB to increase its share ownership above 90%.

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