(CercleFinance.com) – AB InBev shares rose in strong trading volumes on Wednesday on the Brussels Stock Exchange, with Jefferies welcoming the more favorable outlook for the beer giant.
At 2:00 p.m., the stock gained 0.7% compared to a decline of 0.3% for the BEL 20 index.
In a note, Jefferies indicates that it has raised its advice on the brewer from ‘hold’ to ‘buy’, with a price target raised from 56 to 70 euros.
‘After a period of extreme volatility, the prospects offered by the beer market are underestimated,’ the broker underlines in his 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 go from ‘problematic’ case to that of ‘favorite’ by regaining even a quarter of the sales recently lost, which would allow it to climb among the three leading global brands alongside Brahma Brazil and Michelob Ultra.
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