(CercleFinance.com) – Jefferies raised its advice on AB InBev from ‘hold’ to ‘buy’ on Wednesday, with a price target raised from 56 to 70 euros, welcoming the more favorable outlook for the beer giant.
‘After a period of extreme volatility, the prospects offered by the beer market are underestimated,’ underlines the broker in a research note.
According to him, 2024 should in fact constitute the first ‘normal’ year since 2019 and the appearance of Covid, which leads him to anticipate growth of 1% to 2% in volume sales this year.
From AB InBev’s point of view, this should result in volumes increasing by 5% and turnover increasing by 15%, explains the broker, which therefore expects an increasing EBITDA. from 15% to 20% likely in turn to result in increased shareholder remuneration and a revaluation on the stock market.
As for the ‘Bud Light’ case, Jefferies estimates that the brand could move from ‘problematic’ case to ‘favorite’ by regaining even a quarter of the recently lost sales, which would allow it to recover. become one of the three main global brands alongside Brahma Brazil and Michelob Ultra.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyzes distributed by Cercle Finance only constitute a decision-making aid for investors. Cercle Finance cannot be held responsible directly or indirectly following the use of information and analyzes by readers. It is recommended that any uninformed person consult a professional advisor before making any investment. This indicative information does not in any way constitute an inducement to sell or a solicitation to buy.
Are you following this action?
Receive all the information on AB INBEV in real time: