Market Overview

UPDATE: Credit Suisse Upgrades Anheuser-Busch InBev to Outperform on Balance Sheet Optionality

Related BUD
#PreMarket Primer: Thursday, September 25: US Airstrikes Do Little To Stem ISIS Advances
Societe Generale Issues Ratings Changes On Anheuser-Busch InBev SA, Kellogg Company And More
Market Watch: Overdraft Fees and Stocks Take a Dive (Fox Business)

Credit Suisse upgraded Anheuser-Busch InBev (NYSE: BUD) from Neutral to Outperform.

Credit Suisse said, "We believe the market is underestimating ABI's balance sheet optionality and the potential upside to Grupo Modelo synergy targets. … With limited balance sheet impact from Modelo in our numbers, i) we believe ABI could raise its payout ratio to at least 60% in 2013E—on this basis, the stock would yield c3.5%, the highest in staples ex Tobacco. ii) We incorporate share buybacks into our model, which are c3% EPS accretive (maintaining net debt/EBITDA at the targeted 2x). This drives 2013E–16E c18% total shareholder return CAGR—best-in-class among staples despite a rising tax rate."

Anheuser-Busch InBev closed at $93.69 on Wednesday.

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: Credit SuisseAnalyst Color Upgrades Analyst Ratings

 

Related Articles (BUD)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters