UK: Interbrew rating and price target raised
Shares in Interbrew were upgraded by UBS yesterday. UBS has shifted its rating on the Belgium-based brewer to 'buy' from 'neutral', while raising its price target to €30 from €24.50, based on the significant EBITA uplift the group's 'old' assets is expected to generate.
While Interbrew's pending merger with AmBev has grabbed the headlines recently, UBS said it believes that the growth potential from existing Interbrew assets is equally as important.
The broker estimates that existing assets can contribute incremental EBITA of €290m - one-third of the total proforma EBITA growth.
The uplift is driven mainly by the group's mature markets - Western Europe and Canada, the broker noted.
Meanwhile, UBS also expects that higher medium-term sales growth assumptions and a lower level of capital re-investment are all driving a higher Return on Invested Capital (ROIC) of 15%. Previously, UBS had pegged ROIC at 10%.
The global roll-out of InBev's Brazilian beer, Brahma, adds a third premium brand to the global brewer's international portfolio but some observers have suggested it's an unnecessary step which threat...
Functional soft drinks are relatively undeveloped in Latin America in comparison with Europe but there is significant growth potential. Hope Lee of industry analysts, Euromonitor International, examin...
InBev has announced that the deadline for the receipt of acceptances for the recommended offers of US$33.41 for the remaining Class A (non-voting) shares in SUN Interbrew, along with Class A Securitie...
SUN Interbrew is looking to buy into a Siberian brewer, according to local press reports....
Interbrew UK has announced plans to launch a new speciality beer....
InBev has extended the deadline for the receipt of acceptances for the recommended offers of USD33.41 in cash for the remaining shares and Securities that it does not already own in SUN Interbrew (SIL...
The Brazilian brewer AmBev, now part of the InBev empire, said yesterday that its first quarter net income had fallen 52.7% to R$144.2m....
AmBev Peru is to launch a new beer in the market that will bring competition to a market so far dominated by the monopoly of Union de Cervecerias Peruanas Backus & Johnston SAA, or Backus....
- Analysis - SABMiller to add bolt-ons in Africa?
- A-B InBev's Move on Tennent's Super Makes Sense
- India: Everyone's Favourite Spirits Market
- Brand Diversification Driving Craft Brewery Growth
- Analysis - Stock Spirits: Poland's number one
- Diageo scraps Arthur's Day, but singer left sad
- Pernod Ricard's Café de Paris Pear, Pomegranate
- PepsiCo CEO sees "profound" change in US consumers
- William Grant sinks GBP185,000 into "No" camp
- SodaStream silent on John Lewis pullout in UK