Brazil: AmBev "buy," target price raised

Analysts at UBS reiterate their "buy" rating on AmBev. The target price has been raised from $37.75 to $39.25, Newratings posted on May 16.

In a research note published this morning, the analysts mention that the company posted robust operating results for 1Q05. AmBev is likely to witness better-than-anticipated margins in Brazil going ahead, the analysts say. The net earnings estimates for 2005 and 2006 have been reduced by 14% and 22%, respectively, to reflect increased expenses and higher-than-expected goodwill amortization charges in 2006.

E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .