Broker tips: SABMiller, AG Barr, Victrex

28th May 2013 11:05

Credit Suisse continues to expect SABMiller to 'outperform' despite cutting its target price for the beverages stock from 4,000p to 3,920p on the back of negative foreign exchange movements.Nevertheless, analysts remain upbeat despite the stock's recent strong run: "Whilst the shares are +25% year-to-date (versus sector +15%), the weaker £/$ has helped by c10% (SAB is listed in £, but reports in $, so has translation benefits from weaker £/$). Adjusting for this, the shares have performed only in line with the sector year-to-date - now trading on a c5.0% price-to-earnings premium to the sector, we don't view valuation as too demanding."First-quarter results from AG Barr were "very strong" according to Canaccord Genuity, but the broker has downgraded the soft drinks company from 'buy' to 'hold' following its recent outperformance and share gains.The broker highlighted a number of positives with the company's trading update on Tuesday but said it has moved to a 'hold' rating ahead of the Competition Commission's provisional findings into the company's proposed merger with Britvic in early June. Canaccord said that the shares are now "up with events" and has kept its target price of 570p.Shares in polymer manufacturer Victrex surged after a forecast-beating first-half report, the standout of which was the 15% increase in the dividend, according to Jefferies.However, the broker kept its 'hold' rating on the stock, saying that on its forecasts the shares trade at 19 and 18 times 2013 and 2014 earnings. "Post the earlier pre-close update, these interims appear to only fill in the gaps rather than reveal anything materially new."