Belgium: Market analysts upped InBev’s shares

Goldman Sachs ups InBev (INB.BT) target to EUR53 from EUR50, following positive 3Q results. Says risks ahead include slowing demand in Brazil, Canadian competitor pricing and reinvestment of cost savings in Europe. Keeps at buy. Shares +2% at EUR47.11, Dow Jones Newswires communicated on November 13th.

On November 10th Dow Jones Newswires stated that Delta Lloyd ups InBev target to EUR45.50 from EUR40.50 after what it calls better than expected 3Q results. Analyst Johan van den Hooven impressed both by an 11% rise in sales and impressive EBITDA margin improved of 390 basis points. But van den Hooven remains cautious on the stock because management hasn't given any guidance or financial targets. Keeps at hold. Inbev +0.1% to EUR46.09.

Other analysts at Dresdner Kleinwort maintain their "buy" rating on Inbev (ITK.MUN), while raising their estimates for the company, according to Dow Jones Newswires statement on November 10. The target price has been raised from €46.60 to €52.

Analysts at ING Financial Markets maintained their "hold" rating on InBev, while raising their estimates for the company, Newratings released November 10th. The 12-month target price has been raised from €45.1 to €46.8.

In a research note published November 10th, the analysts mention that the company has reported its 3Q06 EPS, excluding amortisation and exceptional items, significantly ahead of the consensus, partly driven by lower-than-anticipated third party deduction. Although InBev is making significant progress in cost cutting, the declining trend in its volume growth could represent early warning signs, the analysts say. The EPS estimates for 2006, 2007 and 2008 have been raised from €2.20 to €2.33, from €2.45 to €2.59 and from €2.79 to €2.94, respectively.

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