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%.