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UPDATE: Bank of America Downgrades Anheuser-Busch InBev to Neutral on Regulatory Uncertainty to Deal

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Bank of America downgraded Anheuser-Busch InBev (NYSE: BUD) from Buy to Neutral and lowered the price target to $89.00.

Bank of America said, "Following the DoJ's decision to attempt to block ABI's acquisition of Modelo, we downgrade our rating to Neutral. While ABI plans to “vigorously contest”” the decision, we believe the process could take 6-12 months, with the corresponding uncertainty capping upside to valuation. In this context we believe that it is also prudent to deconsolidate Modelo from our forecasts resulting in a 6% & 9% cut to FY13/14 EPS estimates; we consequently lower our 12m PO to €66, based upon a 17.5x cal'14E PE & 11.5x EV/EBITDA."

Anheuser-Busch InBev closed at $92.28 on Friday.

Latest Ratings for BUD

DateFirmActionFromTo
Sep 2014Societe GeneraleUpgradesSellHold
Sep 2014BTIG ResearchDowngradesBuyNeutral
Aug 2014Brasil PluralInitiates Coverage onOverweight

View More Analyst Ratings for BUD
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Downgrades Analyst Ratings

 

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