NETHERLANDS: Heineken, InBev, SABMiller benefit from coverage review

By just-drinks.com editorial team | 18 September 2007

Heineken, InBev and SABMiller have all been the subject of a ratings review by Dutch broker ING.

The three brewers saw their price targets lifted by ING yesterday (17 September) on the forecast that the earnings per share growth gap between beer and spirits should increase until perhaps as far away as 2016.

Heineken had its price target upped to EUR58 from EUR53, while InBev was increased to EUR72 from EUR68. Both held their 'buy' recommendation with ING.

SABMiller, meanwhile, had its coverage lifted to 'buy', with its price target being raised to 1,500 pence from 1,175p. The broker highlighted improving trends for the brewer in the US, while the emergence of Africa as a growth market and anticipated investor focus on China next year, when the country will host the Olympic Games, also contributed to the move.

"Our analysis shows that the trends of sociological-based premiumisation, emerging market growth and cost-cutting are leading to strong operational leverage in the brewing sector," ING said.

Sectors: Beer & cider

Companies: Heineken, InBev, SABMiller