UPDATE: Stifel Nicolaus Initiates Coverage on Beam with Hold Rating on Valuation

In a report published Friday, Stifel Nicolaus analyst Mark Swartzberg initiated coverage on Beam

with a Hold rating. In the report, Swartzberg noted, “We are initiating coverage of Beam Inc. with a Hold rating, and view the company's premium-to-spirits valuation as a sign outperformance will be difficult in the absence of improving growth or a takeout. (We have no knowledge of M&A discussions and believe consensus revenue estimates for 2013 are more likely 2%-3% too high than too low). Created as a pure-play spirits company in late 2011, Beam Inc., the maker and marketer of Jim Beam, Pinnacle vodka, Skinnygirl ready-to-drink cocktails, and other premium spirits, is growing revenues by mid-single digits and aiming to outperform its sectors by growing internationally, building and acquiring high-growth brands (e.g., Maker's Mark), and strengthening Jim Beam and other large brands in the U.S.” Beam closed on Thursday at $63.42.