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.

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".

In its review of the insurance sector, UBS also cut its recommendation for peers Standard Life and Phoenix from 'neutral' to 'sell' on valuation grounds.

However, the broker raised its rating for St James's Place from 'neutral' to 'buy', saying it expects "positive operational momentum to drive further multiple expansion, despite market trends".

While Credit Suisse has retained an 'overweight' position in UK equities, the broker has trimmed its position to pay for its recent upgrade to Japan and picked out 'what to buy' in its London-listed coverage.

Credit Suisse said it likes cheap international earners such as Shire and Smiths Group as they benefit as inflation expectations rise. This also has positive implications for domestic real assets like real estate investment trusts and home-builders.

Meanwhile, as equity allocations rise, asset managers such as Aberdeen should also benefit from strong equity flows.

BC

Related share prices
SABMiller (SAB) share price
Smiths Group (SMIN) share price
Shire Plc (SHP) share price
Aberdeen Asset Management (ADN) share price
Standard Life (SL.) share price
Phoenix Group Holdings (DI) (PHNX) share price