AB Inbev: BoA cuts target price
(CercleFinance.com) - Bank of America (BoA) maintains a "neutral" rating on Belgian brewer AB InBev while reducing its target price to 55 euros, after it cut its forecasts for operating profit by 5% to 6%, while lowering its EPS estimates by 6 to 7%.
The broker points out that the fourth quarter of 2020 showed strong sales growth (+4.5%), while its EBITDA margin
(-260 basis points) was disappointing, as has been the case in recent quarters.
"While many of the margin headwinds are temporary, weaker margins also reflect higher cost to compete and drive better sales", BoA adds.
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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 points out that the fourth quarter of 2020 showed strong sales growth (+4.5%), while its EBITDA margin
(-260 basis points) was disappointing, as has been the case in recent quarters.
"While many of the margin headwinds are temporary, weaker margins also reflect higher cost to compete and drive better sales", BoA adds.
Copyright (c) 2021 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.