UK & South Africa: Merrill Lynch cuts SABMiller target to 1110p

Merrill Lynch cuts SABMiller's target to 1110p from 1160p and downgrades FY '07E EPS and '08E EPS by 3%, Dow Jones Newswires communicated July 12.

This follows the 2% downgrade to group EBITDA and a US$35 million higher interest charge. Merrill Lynch notes that SABMiller still intends to utilize the free cash flow after dividend payments to make bolt-on acquisitions. It reiterates buy rating. SABMiller's shares traded +2% at 984.5p as for July 12.

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