Belgium: InBev "overweight," target price reduced

Analyst Ian Shackleton of Lehman Brothers maintains his "overweight" rating on InBev SA, while reducing his estimates for the company, Newratings reported January 17. The target price has been reduced from €71 to €67.

In a research note, the analyst mentions that the current valuation of the company’s stock already reflects some of the issues related to reinvestment rates. There are concerns surrounding the impact of potential input costs on InBev’s performance, the analyst says. The EPS estimate for the next year has been reduced from €3.52 to €3.37, to reflect currency costs and higher input costs.

18 January, 2008