SABMiller Stock Upgraded Thanks to Weak Sterling

SABMiller's most recent results revealed tepid growth - but thanks to a weak pound analysts have upgraded the fair value estimate

Philip Gorham 25 July, 2016 | 3:52PM

Although fourth-quarter earnings were in line with analysts’ forecasts, we are raising our fair value estimate for SABMiller (SAB) to £44 from £42 to account for the depreciation of the pound sterling against the U.S. dollar in recent weeks.

The depreciation of sterling since Brexit could force ABI to raise its cash offer for SABMiller

SABMiller's first-quarter trading update revealed fairly tepid organic growth, weighed down by weak volumes in North America, but as the company enters the homestretch of its acquisition by AB InBev, the benefits to ABI from the deal were clear in the performance of SAB's emerging markets.

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Philip Gorham  

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