Jefferies has retained its 'buy' rating and 3,200p target price for beverages giant SABMiller following the company's better-than-expected third-quarter trading update.

Third-quarter organic revenue growth came in at 8.0%, ahead of the consensus forecast of 6.5%, with strong performances in the higher margin markets (Latin American and South Africa) and slower growth in less profitable ones (China and Europe), Jefferies said.

While organic volume growth failed to meet estimates, the broker pointed out that this was mainly due to weaker performances to the lower-margin regions for the group (Europe and Asia).

Meanwhile, volume patterns in Australia showed signs of improvement in the three months to December 31st 2012, with the rate of decline easing. "We would expect this improving trend to continue in the coming quarters," Jefferies said.

"Overall, supportive to the high-growth credentials of the group and to our estimate for 100 basis points of organic margin improvement in 2013."

While the stock has a premium rating - trading at 18 times calendar 2013 earnings versus the 15.4 multiple of peers - the broker said that this is "justified given its superior growth profile and strong track record of delivery".

Markets reacted positively to the company's statement this morning, with shares up 0.62% at 2,979p by 09:32.

BC

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