Beverage giant SABMiller will report earnings increase in its fourth-quarter results on Thursday, according to analysts.
A day ahead of the results, Investec predicts the brewer of popular beers Peroni and Groslsh will report a 2.0% organic growth in sales of lager.
"The long-term investment case is still very appealing to us and the stock looks like a solid Hold at current levels, especially with ABInbev lurking just below the horizon," the broker said in relation to its UK rival.
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"We have increased our price earnings-based target price to reflect a sector re-rating."
The broker issued the company's stocks with a 'hold' rating and target price of 3600p.
Consensus is for a 5.0% rise in Latin America and 0.5% jump in Europe.
It comes after the group last month announced plans to target further beer volume growth and share gains in its Latin American division of the next three to five years.
SABMiller said that in Latin America, which is its biggest contributor to profitability, the beer category's share of total alcohol consumed there has grown significantly. However the firm noted consumption was still well below the levels reached in reference markets like Venezuela, Panama, Brazil and Mexico.
In the third quarter, the company delivered a revenue rise of 8.0%, ahead of a 6.5% forecast, following strong performances in Latin American and South Africa and slower growth in China and Europe.
Thursday April 18th
INTERIMS
Debenhams
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Brooks Macdonald Group, IndigoVision Group
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Initial unemployment claims (US) (13:30)
Philly Fed manufacturing survey (15:00)
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