UK: SABMiller believes that the low-carbohydrate beer market is set for strong growth, and suggests that Miller Lite — which already has about 20 % of that niche — is the best-positioned product to benefit in its price category, Business Times posted on March 02. The US broker thinks the brand will boost the growth of Miller during 2005 and 2006, and has raised its recommendation from hold to buy with a raised 660p target.

Investec Securities is also confident that the improved performance of Miller Lite since last September is sustainable. That optimism has prompted it to raise its profit forecasts for the group, as has the weakness of the US dollar, which it calculates will have a positive impact on SABMiller’s operations where the euro is the key currency.

With Investec also noting that SABMiller’s shares have lagged the European drinks sector since the start of the year, it believes that the shares should be trading between 645p and 730p, prompting it to move from buy to strong buy. SABMiller gained 16p at 580p.

02 March, 2004