AB InBev: Bryan Garnier cuts target
(CercleFinance.com) - Bryan Garnier reinstates its "buy" rating on AB InBev, although has cut its fair value for the share by 10% to 112 euros, after revising its earnings estimates for the beer giant.
The broker estimates that due to hedging that is about a year ahead of schedule, the impact of rising raw materials prices and depreciating emerging market currencies is expected to be greater on 2019 results and margins.
Therefore, Bryan Garnier has cut its estimate for 2019 operating profit by 8% to 19.8 billion dollars, and has also trimmed that for 2018 by 4% to 19.2 billion dollars, with the translation of unrealised profits in dollars.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker estimates that due to hedging that is about a year ahead of schedule, the impact of rising raw materials prices and depreciating emerging market currencies is expected to be greater on 2019 results and margins.
Therefore, Bryan Garnier has cut its estimate for 2019 operating profit by 8% to 19.8 billion dollars, and has also trimmed that for 2018 by 4% to 19.2 billion dollars, with the translation of unrealised profits in dollars.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.