SABMiller has had its share recommendation upped. Morgan Stanley yesterday (4 May) upgraded the brewer to 'overweight' from 'equalweight.'

The US broker told clients that it believes that the company's market share growth, cost control and mix improvement can help raise its organic EBITA growth (pre-currency) from between 4% and 5% to the high single digits.

SABMiller has top three positions in 30 of its 40 markets, Morgan Stanley said, so in most cases it can harness a disproportionate share of the profit pool.

The broker also said that SABMiller profits in the US market should be satisfactory as the company has cost savings and mix driving its growth. Morgan Stanley feels that Budweiser has a lot more to lose in a price war, so it expects rationality to return to the US in time.