BEST of the BROKERS
AB INBEV
Liberum Capital has maintained its “buy” rating on the brewer and raised its target price from €63 to €68 following its quarterly update this week. The broker says it was encouraged by the expansion in the company’s gross margin – up 200bp globally and 450bp in North America. It says the most important highlight of the quarter was that “distribution system efficiency gains” are starting to have an impact. Liberum says longer term opportunities in China and the rollout of Budweiser globally will drive further upside.
ABERDEEN ASSET MANAGEMENT
Following better-than-expected first-half results from the asset manager, Numis has upgraded its full year earnings per share forecast by seven per cent this year and two per cent next year, and says Aberdeen remains one of its top picks. The broker leaves its 317p target price unchanged to reflect that the forecast changes are offset slightly by a slower than expected balance sheet improvement in the period, though this reflects the share buyback rather than a build up of cash.
SPORTS DIRECT
Panmure Gordon has upgraded its forecasts and target price for the sports retailing group, which it rates as a “buy”. After last week’s interim management statement the broker is upgrading 2014 and 2015 full-year results by 10 per cent and 14 per cent respectively, expecting Sports Direct to be able to fill the gap left by Euro 2012, mainly through online growth.
Panmure has increased its target price from 300p to 350p, saying the current valuation does not take into account strong cash generation.