Nomura Securities Maintains a 'Reduce' on Beam Inc (BEAM); Q4/2011 Review

Nomura Securities maintains a 'Reduce' on Beam Inc (NYSE: BEAM) price target raised from $40 to $43.

Analyst, Ian Shackleton, said, "Despite the slowdown in Q4 momentum (organic revenue growth +4% vs Q3 +12%), company delivered marginally ahead of guidance with 10% eps growth (vs guidance high single digits). Our estimates remain broadly unchanged – we assume 9% eps growth in 2012 in line with long-term target – however our target price increases to US$43 as we roll-forward our DCF-driven target price by one year. Although we see attractive long-term fundamentals in global spirits, we have some concerns about potential weakness in price/mix in US spirits in the near term. Our DCF-driven target price of US$43 values the company at a 2013E PER of 16.9x vs the spirits average 15.5x. The current share price values the stock at a 2012E PER of c.23x."

For an analyst ratings summary and ratings history on Beam Inc click here. For more ratings news on Beam Inc click here.

Shares of Beam Inc closed at $54.32 yesterday.

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