AB InBev: Jefferies upgrades its recommendation to 'buy

(CercleFinance.com) - On Wednesday, Jefferies raised its recommendation on AB InBev from 'hold' to 'buy', with a price target raised from ?56 to ?70, welcoming the beer giant's more favorable outlook.


After a period of extreme volatility, the outlook for the beer market is underestimated", says the broker in a research note.

According to the broker, 2024 should be the first 'normal' year since 2019 and the introduction of Covid, which leads him to anticipate sales volume growth of 1% to 2% this year.

From AB InBev's point of view, this should translate into volume growth of 5% and sales growth of 15%, explains the broker, who consequently expects Ebitda growth of 15% to 20%, which in turn should translate into higher shareholder remuneration and an increase in stock market value.

As for 'Bud Light', Jefferies believes that the brand could be upgraded from a 'problem' to a 'favorite' by regaining even a quarter of its recently lost sales, which would place it among the world's top three brands alongside Brahma Brazil and Michelob Ultra.

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