US: A-B rating gets upgrade
US brewing giant Anheuser-Busch has had its coverage raised.
Investment analyst Stifel Nicolaus yesterday (19 July) upped its rating of the brewer to 'buy' from 'hold', while establishing a 12-month target price of US$52 per share. "We consider valuation undemanding and believe market expectations for core earnings are too low," Stifel Nicolaus said.
"Modelo, of whom A-B owns 50%, expects its just-announced export joint venture to increase operating income by approximately 25%, or 2007 accretion equivalent to approximately US$0.12 in recurring EPS for BUD," analyst Mark Swartzberg said. "This is above our prior estimate of $0.04.
"Taking a new look at A-B's margin erosion in 2005," Swartzberg continued, "We find that an emerging improvement in the US pricing environment is more important than previously believed. Relatedly, while we are sensitive to marketplace jitters - "How will Miller respond to months of share loss?" - we expect A-B to meet success raising prices again this fall."
The analyst raised its 2006 and 2007 EPS estimates to US$2.50 - up by US$0.03 - and US$2.81 - up US$0.08 - respectively.
The century-old rivalry between Anheuser-Busch and Czech brewer Budejovicky Budvar took an unexpected twist earlier this week when the two brewers signed an import deal for the US market. However, des...
Carlsberg is in talks to distribute the flagship beer of Czech state-owned brewer Budejovicky Budvar....
Moody's has lowered its long-term rating of Anheuser-Busch to A2 from A1 following a review of the US brewer....
Czech brewer Budejovicky Budvar saw its overseas sales rise 7% last year thanks to growing demand across its key export markets....
Dutch brewer Grolsch will launch a new, distinctive green bottle during the first quarter of the year....
Brewing giant Anheuser-Busch has received a ratings boost from a US investment bank....
Anheuser-Busch cannot use the Budweiser name in Portugal, the highest chamber of the European Court of Human Rights has ruled....
Grupo Modelo has successfully appealed against an antitrust ruling in its home market....
- Craft spirits shake-out will be just the beginning
- How Treasury is rewriting the rule book - Comment
- Drinkable yogurt - The next drinks opportunity
- Coca-Cola India suspends bottling operations
- Has Diet Coke passed its sell-by date? - Comment
- Diageo brands need "fixing and nurturing" - TWE
- SAB shareholders granted AB InBev vote split
- Pernod Ricard wins Ron Matusalem 'Cuba' legal row
- Work begins on Glasgow distillery
- Sapporo’s Sapporo Premium Black - NPD
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Carlsberg AS (CARL B) - Financial and Strategic SWOT Analysis Review
- Global RTD insights - market forecasts, product innovation and consumer trends
- Adultifying Soft Drinks; Capitalizing on rising adult demand for non-alcoholic beverages