UK: SABMiller gets rating boost

By just-drinks.com editorial team | 17 April 2008

SABMiller's rating has been increased by Dresdner Kleinwort following a trading update from the brewer yesterday.

The broker said today (17 April) that it has upgraded the UK-based brewer to 'buy' from 'add' and raised the target price for the stock to GBP12.50 (US$24.73) up from GBP11.50.

Dresdner Kleinwort said that it has raised its EPS forecasts on the back of SABMiller's steady revenue growth and has confidence that its FY results will come in at the top end of market expectations.

Yesterday the company reported that sales for its 12 months to the end of March have been at the top end of its expectations, as the company benefited from what it described as "successful revenue management and enhanced productivity" as well as favourable exchange rates in some of its major countries.

The group's lager volume growth was 11% for the year with organic growth of 7%. Revenue grew by some 16%, benefiting from price increases and mix improvements, which have offset the impact of higher input costs.

Sectors: Beer & cider

Companies: SABMiller