Belgium: InBev maintained at "buy", target price raised

Analysts at Dresdner Kleinwort maintain their "buy" rating on InBev SA, according to Newratings January 29. The target price has been raised from €55.55 to €57.50.

In a research note published on January 26, the analysts mention that the company’s EBITDA and net profit margins have expanded due to acquisitions and organic growth over the past five years and are currently much higher than those of its peers. InBev is expected to achieve significant cost savings going ahead with the implementation of the Brazilian cost-control approach across all its operations, the analysts say. The company’s EBITDA margins are expected to expand by 350bp between 2006 and 2008, Dresdner Kleinwort adds.