AB Inbev: BofA upgrades stock

(CercleFinance.com) - On Friday, Bank of America upgraded AB Inbev shares from "neutral" to "buy", raising its target price for them from E59 to E65.


In a report, the broker says that the brewer's positive margin turnaround should boost organic earnings growth and lead to an increase in the share price.

BofA points out that the cost of sales is beginning to ease, and that the impact of the recent controversies surrounding the Bud Light brand, which it estimates at over a billion dollars, is now priced in.

Trading at a P/E of just 15x, i.e. at a 15% discount relative to the consumer staples sector, the analyst adds that the stock is currently trading at an "attractive" valuation.


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