Germany: SABMiller’s shares downgraded to 'Hold' by Deutsche Bank
Deutsche Bank downgraded SABMiller PLC’s shares to 'hold' from 'buy' at before the open, due to recent strength in the brewing giant's share price, dealers said, AFX News Limited reported on January 9.
The broker noted that the recent gains have brought the stock close to its 1,200 target price.
Although SABMiller remains the most exposed brewer to buoyant emerging markets, the broker sees little scope for any further near-term upside.
It added that there may be the possibility of currency related earnings upgrades; however this is likely to be offset by a shortage of carbon dioxide in South African soft-drinks production over the key summer period.
The German broker said, in a note issued to clients this morning that, even if it does find room for modest earnings increases, it would still leave the stock on a 15 pct higher multiple than this time last year.
In conclusion, Deutsche remains positive on the medium-term growth prospects of the company.
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