UK: SABMiller reinitiated with "hold"

Analyst Paul van Meurs of Deutsche Bank reinitiates coverage of SABMiller Plc with a "hold" rating. The target price is set to 1200p, Newsrating.com posted on July 3.

In a research note published this morning, the analyst mentions that the company’s profit growth over the short-term is expected to be limited by rising raw material prices and a slowing emerging market consumer environment. SABMiller is, however, likely to achieve EBITA growth of 15% in FY10, aided by cost savings from Bavaria and MillerCoors, the analyst adds. The company’s positioning in the emerging markets is likely to drive above-average long-term growth, Deutsche Bank says.

04 July, 2008