News

UK: Rating shift for SABMiller

Most popular

Why COVID-19 has restored plastic's popularity

Brown-Forman Performance Trends 2016-2020 - data

Remy Cointreau Performance Trends 2016-2020

COVID-19 a double-edged sword for CBD

How drinks companies can trump the water fountain

MORE

SABMiller has seen its share rating upgraded. UBS has raised its recommendation for the brewer to 'buy' from 'neutral.' The move follows the announcement earlier today (19 May) of strong full-year figures by the London-based company.

SABMiller this morning posted pre-tax profit of US$2.19bn, beating analysts' expectations of between US$2bn and US$2.1bn and last year's US$1.39bn.

UBS noted that consensus-beating EPS was driven by better-than-expected performances in South Africa, Europe and Central America, with Miller and Africa and Asia in-line.

UBS said that it believes the company is in the early stages of a volume pick up from the rest of Africa supported by underlying GDP growth. In Europe, UBS said, the brewer is taking share in key markets such as Poland. While UBS predicts a tough year for profit growth in the US, the broker emphasised that Miller only accounts for 10% of its five-year incremental EBITA growth.

UBS also raised its target price for SABMiller to 1,000 pence from 940p.

JP Morgan, however, maintained its 'overweight' stance on the company, saying that the brewer has the best organic sales and profit growth rate in the industry while having a rating still below its lower growth peers.


Sectors: Beer & cider

Companies: SABMiller

Related Content

Anheuser-Busch InBev reveals extent of Africa price ladder overhaul in wake of SABMiller buy

Anheuser-Busch InBev reveals extent of Africa price ladder overhaul in wake of SABMiller buy...

"The mainstream part of our wine portfolio is incredibly important for Africa" - just-drinks meets D...

"At SABMiller, we went through a bit of disbelief and almost denial" - just-drinks meets Hector Goro...

"In any integration, we've always talked about three kinds of synergies. With SABMiller, there was a...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?