PHIL CARROLL SHORE CAPITAL
Whilst Europe volumes appear strong, we note the mention of growth in the economy segment, increased promotional spend and resetting of price points, which to us, means the mix is negative and therefore margins will be lower. We downgrade from ‘buy’ to ‘hold’.
DIRK VAN VLAANDEREN JEFFERIES
While the company is clearly doing a great job of balancing the price-mix/volume equation, indications of a volume softening, particularly in Latin America, could result in some negative market attention. However, we continue our ‘buy’ rating with a target price of 2,990p.
EDDY HARGREAVES CANACCORD
We see SABMiller as a strong company with excellent medium term growth prospects, but the outlook for the shares is more subdued over the next three to six months. We are holders of the stock and take 2,750p as our target given somewhat weaker than expected current trading.