UK: Alled Domecq rating initiated by Amro
ABN Amro has initiated coverage of Allied Domecq. The broker began its coverage of the drinks group with a "hold" rating and a target price of 463 pence.
In a note to clients, ABN said that it expects the group to report an acceleration of operating profit growth in the second half of fiscal 2004, because trading conditions in Asia and Latin America are likely to have improved.
ABN noted that it thinks there is a probability this positive newsflow is driving, and may continue to drive, the share price above its intrinsic fundamental value.
The Dutch broker calculated that Allied Domecq is trading on a price/earnings multiple of 13.5 times 2004 estimates compared to 15.6 times for its peer group, thanks to its temporarily low tax rate.
However, ABN pointed out that Allied Domecq's 2004 EV/EBITDA multiple of 11.4 times and free cash flow yield of 5.4% is in line with its peer group.
As Pernod Ricard, Allied Domecq and Fortune Brands close in on the biggest drinks industry deal since the sale of Seagram, opinion about how the deal will be structured and who stands to win and lose ...
Cautious optimism is probably the best way to describe today's press reaction to Pernod's friendly bid for Allied Domecq....
Spirits firm Allied Domecq has agreed to a takeover bid from smaller rival Pernod Ricard, subject to agreement from Allied shareholders....
Allied Domecq last night accepted Pernod Ricard's offer to buy the UK-based drinks giant....
Allied Domecq today delivered a 7% increase in first half group profits before tax to £285m. Earnings per share were up 7% to 19.2p, turnover that was flat at £1,700m....
Drinks producer and distributor Todhunter International has said that its controlling shareholder, CL Financial, is interested in acquiring some of the brands of Allied Domecq that may become availabl...
Pernod Ricard has had its rating raised....
Allied Domecq has added a new flavour to its Malibu range. The company said yesterday that it would be launching Malibu Passion Fruit in the US from April 15....
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