Only 90p of SABMiller’s 185p slide to £16.55 since 11 January can be explained by its failure to acquire Mexican company FEMSA Cerveza, says Evolution Securities. The broker thinks the rest is due to poor sentiment and fears over beer VAT hikes in Colombia rather than fundamentals, and reiterates “buy” with a target of £18.50.
WH Ireland has raised its 2010 forecast 15 per cent from the current pre-tax profit expectation of £14.8m as the positive effects of cost control measures feed through. However, analyst Nick Beardsmore holds the stock on “underperform” in the belief the share price fully discounts the recovery that is underway.
F&C ASSET MANAGEMENT
Singer Capital?Markets says the shares are trading at a “significant” discount to the market at 70p, which is 9.7 times 2010 earnings. In tomorrow’s trading update, Singer expects net outflows of £800m for the fourth quarter with year-end AUM at £98.4bn. Analyst Sarah?Ing predicts F&C’s dividend will stay at 6p for the full year.