Belgium: InBev "buy," target price raised

Analysts at ING Financial Markets maintain their "buy" rating on InBev, while raising their estimates for the company. The 12-month target price has been raised from EUR 37.20 to EUR 43.00, ING Financial Markets posted on January 25.

In a research note published this morning, the analysts mention that the company has agreed to acquire Fujian Sedrin for EUR 614 million. Fujian Sedrin holds a leading market position in the Fujian and Jiangxi provinces, the analysts say. InBev expects €95 million in cost synergies and EUR 15 million in sales synergies from the acquisition, ING Financial Markets adds.

The EPS estimates for FY2006 and FY2007 have been raised from €2.08 to €2.18 and from EUR 2.42 to EUR 2.53, respectively.

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 .