UBS has shifted its coverage of SABMiller.

The broker today (2 August) upgraded its coverage of SABMiller from 'reduce' to 'neutral' and raised its price target from GBP12.80 to GBP13.00. At the same time, UBS upped its full-year EPS estimate for 2008 for the brewer by 1.2% to US$1.44.

UBS added that the upgrade rating reflects both SABMiller's share price weakness and strong start to the year after the brewer posted a healthy lift in quarterly sales volumes this week, despite a flat performance by its US division.

Lager volumes at SABMiller for the three months to the end of June were up by 13% in organic terms. Financial performance was described as "good", despite higher input costs and increased investment across the business.