The investment bank, Dresdner Kleinwort Wasserstein, has reduced its rating on the brewing conglomerate, SABMiller, from “add” to “hold”, blaming the current trading at its US operation, Miller. Dresdner has also lowered its share price target for SABMiller from 530p to 440p.
SABMiller announced yesterday that US beer volumes were down by 3% in the six months since SAB acquired the US brewer. “This continuing deterioration emphasises the risk in the market’s assumption that Miller will return to profit growth in 2004,” Dresdner said.
