Market Overview

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

Share:
Related BUD
10 Reasons The Stock Market Rebounded Two Mornings After Black Monday
4 Top-Performing Stocks For Sports Fans

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
Aug 2015INGUpgradesHoldBuy
Jul 2015Stifel NicolausMaintainsBuy
Jul 2015NomuraDowngradesBuyNeutral

View More Analyst Ratings for BUD
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Downgrades Analyst Ratings

 

Related Articles (BUD)

Get Benzinga's Newsletters