Under new management SABMiller (LON:SAB) is a ‘buy’ according to Nomura analyst Edward Mundy who upgrades from ‘hold’.
The upgrade saw SABMiller shares among the FTSE 100’s top riser on Tuesday Morning.
“We see potential for the company to rediscover its entrepreneurial spirit,” he said in a note.
Mundy also highlighted the brewer’s strong balance sheet which could provide the ‘firepower’ for acquisitions to expand the portfolio and add to existing brands such as Miller, Coors, Fosters and Bulmers (to name just a few).
Nomura’s new price target for SABMiller is 4,000p, up from 3,000p, and it suggests some 13% upside to the current price of 3,530p.
Mundy also downgrade beer rival – and often mooted M&A suitor – Anheuser-Busch InBev to ‘neutral’ from ‘buy’, after the Budweiser and Stella Artois owner’s stock has now risen to the analyst’s target.
“Although we remain positive on the scope for longer-term growth at ABI, we see a lack of obvious near-term catalysts to drive continued share price momentum and step back after the stock’s strong run,” he said.
Elsewhere in the City, Jefferies repeated its ‘buy’ recommendation for electrical and white goods retailer AO World (LON:AO.) but cut in half its price target to 192p from 410p.
Jefferies also adjusted price target for software firm Aveva (LON:AVV) to 2,580p from 1,840p, whilst Credit Suisse did similar with its target lifted to 2,600p from 2,200p.
Goldman Sachs nudged higher its target for Sports Direct International (LON:SPD) to 965p from 950p, and repeated a ‘buy’ recommendation.