UK & South Africa: UBS cut SABMiller’s rating from ‘neutral’ to ‘reduce’

UBS downgraded SABMiller to ‘reduce’ from ‘neutral’, with slowing growth in South Africa offsetting strong momentum elsewhere, Dow Jones Newswires released November 20. At the same time, the bank raised its target price to 1,090p from 1,070p on "recent rand strength." UBS noted that while slowing growth in consumer expenditure is affecting South Africa, "in Europe margins continue to expand from already best in class levels and in Africa and Asia volumes continue to run ahead of GDP." Shares closed November 17 at 1,081p.

22 November, 2006