Market Overview

Anheuser Busch Analyst Says Share Price Has Gone Too Flat, M&A Unlikely

Anheuser Busch Analyst Says Share Price Has Gone Too Flat, M&A Unlikely

Despite Anheuser Busch InBev NV (NYSE: BUD) performing broadly in-line with expectations in 2018, its share price has declined by around 42 percent, lagging the MSCI Emerging Markets Index by 24 points and the SPX by 35 points, according to Susquehanna.

The Analyst

Analyst Pablo Zuanic maintains a Positive rating on Anheuser Busch InBev and reduced the price target from $90 to $84.

The Thesis

The beer stock has limited catalysts, Zuanic said in a Monday note.

Given the decline in share price and low leverage, Anheuser Busch InBev does not have the flexibility for M&A deals in the medium-term, the analyst said. 

The company’s ability to set prices in emerging markets could be limited by the impact of a slowdown in China, Zuanic said. Anheuser Busch InBev’s U.S. business is unlikely to be a catalyst, he said. 

This may not be the right time to split the company into one that focuses on developed markets and one targeting emerging markets, the analyst said, adding that AmBev is unlikely to issue stock to buy out Anheuser Busch InBev’s shareholders.

“Improving sentiment on Brazil, faster-than-expected deleverage and more aggressive revenue and cost synergy realization may help the stock in the year ahead." 

Price Action

Anheuser Busch InBev were trading up slightly at $69.15 at the time of publication. 

Related Links:

Tilray's High Park Receives Cannabis Processing License

Bernstein: Vaping, Edibles To Dominate Cannabis Consumption

An Anheuser Busch Clydesdale at Busch Gardens. Photo by Leadgold/Wikimedia. 

Latest Ratings for BUD

Nov 2019UpgradesSellNeutral
Nov 2019MaintainsNeutral
Aug 2019DowngradesEqual-WeightUnderweight

View More Analyst Ratings for BUD
View the Latest Analyst Ratings

Posted-In: Beer beverages Pablo Zuanic SusquehannaAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga


Related Articles (BUD)

View Comments and Join the Discussion!

Latest Ratings

RPAYCantor FitzgeraldMaintains18.0
CMSCredit SuisseDowngrades
PBCTStephens & Co.Maintains15.5
TTECCowen & Co.Initiates Coverage On50.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at