14 January, 2025

USA: Bank of America reiterates Buy rating on AB InBev

Bank of America reiterated its Buy rating on Anheuser-Busch InBev ahead of the earnings season, MSN reported on January 14.

The firm pointed to attractive low double-digit midterm EPS growth that is seen being supported by volume growth in emerging markets. The beer giant is also expected to benefit from margin expansion, which could lead to potentially accelerating cash returns going forward.

"This attractive midterm outlook has been overshadowed by recent volume softness in a few markets (China, Argentina, Mexico), which is well understood, in consensus numbers and should improve in 2025," previewed analyst Andrea Pistacci.

In terms of valuation, Anheuser-Busch InBev (BUD) was noted to be trading at a discount to staples peers. The share price decline of BUD due to investor concerns on potential legislation mandating warnings labels on alcoholic drinks was called overdone.

In the U.S., the company's Michelob Ultra label jumped to being the top-selling draft beer over a December tracking period.

Anheuser-Busch InBev has a consensus Buy rating from both Wall Street analysts and Seeking Alpha analysts.

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