Australia: Foster's downgraded by Macquarie Research

Macquarie Research cuts estimates for Foster's (FGL.AU), downgrade driven by lower volume and pricing assumptions for Australian wine business, Dow Jones Newswires communicated on January 24.

Says recent AC Nielsen figures show core beer brand sales rose 4.3% in 1H, but core wine brand sales fell 7%. "Whilst this clearly highlights the benefits of FGL's multi-beverage model, in this case the strength in beer is unable to offset the underperformance of wine." Cuts FY06 EPS forecast 1.5%, FY07 1.8% and FY08 by 1.6%. Keeps Neutral rating on stock, targets A$5.98. FGL down 3 cents at A$5.34. (LMF)

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