UPDATE: Societe Generale Upgrades Anheuser-Busch InBev to Buy Post Modelo Acquisition

Societe Generale raises its rating on Anheuser-Busch InBev

from Hold to Buy as the company completes the acquisition of the remaining stake in Modello. Societe Generale comments, "Our analysis of ABI’s acquisition of Modelo announced last Friday focuses on the financial impact, since it is clear that owning Modelo outright is preferable to part-ownership with no operational control. We estimate that the acquisition of the 50% of Modelo that it does not control is 6% earnings enhancing by year 1 and 10% by year 3 once the bulk of the synergies (which we estimate at $700m vs group guidance of $600m or 8% of Modelo sales) have been delivered. The deal ROIC will exceed WACC in year 4, a short time span." BUD closed at $79.65 on Friday.