Our expectations were originally lowered due to weaker currencies and to an increased concern about European trading. However, Europe is not quite as bad as we feared and an improved performance in Russia looks positive. We believe the shares lack a catalyst, so we remain at ‘hold’.
JAMES EDWARD JONES | RBC EUROPE
We are not inferring too much from the company’s cautious outlook statement but we do have a few concerns about SABMiller’s operating performance. Marketing and sales have declined without a clear figure as well as a fall in depreciation. We maintain an ‘average risk’ rating.
DIRK VAN VLAANDEREN | JEFFERIES
Flat share price performance since the trading update in October was influenced by concerned investors over slow lager growth but we believe shares remain attractive due to SABMiller’s higher-growth profile and strong emerging market footprint. We have a ‘buy’ rating on the stock.