Foster’s out of favour
April 29, 2010
A range of analysts continued to shy away from endorsing Foster's Group Limited (FGL) saying that a softer beer market would compound problems already seen in the group’s wine division.
Citigroup and GSJBW both listed the beverage maker a SELL, with a price target of $5.00 and $5.80 respectively.
”In the absence of M&A activity, we believe FGL will continue to underperform the broader market,” GSJBW said in its morning stock report.
Meanwhile UBS and Credit Suisse were a little more upbeat, retaining a NEUTRAL recommendation for the stock.
UBS expressed caution on the alcohol sector as a whole, suggesting the Henry Tax Review and upcoming budget could see a hike in taxes on alcohol.
Citigroup and GSJBW both listed the beverage maker a SELL, with a price target of $5.00 and $5.80 respectively.
”In the absence of M&A activity, we believe FGL will continue to underperform the broader market,” GSJBW said in its morning stock report.
Meanwhile UBS and Credit Suisse were a little more upbeat, retaining a NEUTRAL recommendation for the stock.
UBS expressed caution on the alcohol sector as a whole, suggesting the Henry Tax Review and upcoming budget could see a hike in taxes on alcohol.
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