UK: SABMiller "buy," target price raised

Analysts at Dresdner Kleinwort maintain their "buy" rating on SABMiller Plc, while raising their estimates for the company, Newratings reported May 19. The target price has been raised from 1250p to 1400p.

In a research note published on May 16, the analysts mention that the company has reported its FY08 results ahead of expectations. SABMiller has expressed its optimism regarding its trading prospects in the emerging markets, aided by high commodity prices lending support to consumer spending. The company expects the rise in COGS to be offset in FY09 by price increases. The EPS estimate for FY09 has been raised from 157.4c to 159.7c.

20 May, 2008