AB InBev: BofA reinstates coverage at 'neutral'

(CercleFinance.com) - Bank of America on Thursday reinstated coverage of the shares of AB InBev with a "neutral" rating, setting a price target of 55 euros on the stock.


In a research note, the brokerage said the environment has become tougher for the world's largest brewer, with more competition in several key markets and an uncertain post-COVID outlook in most of Latin America.

Against this backdrop, Bank of America believes AB InBev will grow below peers in the medium term, and that it may take longer for its earnings to recover from the first-half trough.

BofA on Thursday reinstated the coverage of the beverage sector with a "positive" bias, with its top picks being Coca-Cola Hellenic and Carlsberg.

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