East Africa Breweries Limited’s #ticker:EABL stock price is set to rise over the medium term on projections of higher revenue from growing beer volumes in the region, analysts at Renaissance Capital say.
Rencap analyst Adedayo Ayeni said in the firm’s latest note on the brewer they expect net revenue in the period between 2018 and 2020 to grow by an average of 18.2 per cent driven by volume growth in Kenya and Tanzania.
“We increase our target price for East African Breweries (EABL) to Sh294.50 per share (from Sh243 previously) and maintain our hold rating. While we recently saw a momentary spike in EABL’s share price following news of a possible lifting of the interest rate cap, we believe there is a fundamental case for a higher valuation,” said the analyst.
