Broker snap: Britvic primed for 'robust' Q1

22nd Jan 2010 12:02

Soft drinks group Britvic should make a 'robust' start to the year and trade in line with a medium-term GB revenue growth target of 5%, Nomura said today.The Japanese broker thinks the current valuation does not adequately reflect the strong top-line outlook for GB growth as well as upward margin momentum.It maintains its 'buy' stance and 500p target price, and predicts a 2.2% increase in total company volumes for the first quarter, with revenues up 3.8%. GB should grow volumes by 3.9% and revenues by 5.9%.The valuation of 12 times estimated 2010 earnings looks attractive against a European beverages sector average of 15x, adds Nomura.