UPDATE: Citigroup Initiates Buy, $45 Pt on Companhia de Bebidas das Americas on Share Pullback and Growth Initiatives

Citigroup initiated its coverage on Companhia de Bebidas das Americas ABV with a Buy rating and a price target of $45. Citigroup commented, "Our Buy rating reflects the combination of 16% pullback in the stock price since 1Q12 results, a stable cost structure, and volume growth initiatives. In our view, AmBev's very high-quality defensive growth profile is more relevant in the context of recent downward revisions of Brazil GDP growth forecasts. We estimate incremental growth in fast growing northern region to add 12% to Brazil beer EBITDA over next three years." Companhia de Bebidas das Americas closed at $37.50 on Thursday.