May 27, 2011 / 12:14 PM / 9 years ago

STOCKS NEWS EUROPE-SABMiller up; Galvan adds to "buy" list

Shares in SABMiller SAB.L take on 1.1 percent, outperforming a 0.9 percent rise by the FTSE 100 .FTSE index, as Galvan Research adds the brewer's stock to its "buy" list following recent full-year results.

“After an extended period of flat-line performances, the profits jump and volume growth this Spring should prompt a significant re-rating for SABMiller. In any event the gain in market share is more than enough to warrant adding SAB to the Galvan Research buy list,” says Andrew Gibson, head of research at Galvan.

Technical factors should also have an influence on the stock, says Galvan.

The broker notes that SABMiller shares have been in a rising trend channel since March based at 2,200 pence with support just below that level at 2,180 pence from the 50-day moving average.

“While this support combination holds, the upside for the shares should be at least a retest of the May resistance zone through 2,300 pence,” Galvan says.

For more on SABMiller’s results, double click on [ID:nLDE74F1W5]

Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net

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