Anheuser Busch InBev SA/NV, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Robert Moskow from TD Cowen maintained a Hold rating on the stock and has a €56.00 price target.
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Robert Moskow has given his Hold rating due to a combination of factors impacting Anheuser Busch InBev SA/NV’s performance. The company’s second-quarter organic growth of 3.0% fell slightly short of expectations, and although earnings per share exceeded forecasts, the stock experienced a notable decline due to a 1.9% drop in volume. The anticipated positive shift in the U.S. market was overshadowed by a significant 9.0% volume decrease in Brazil, attributed to intense price competition and reduced consumer spending.
While North America’s performance showed signs of improvement, with a 2.0% increase in organic sales and a slight volume uptick, the challenges in Brazil and China raise concerns. Brazil, a crucial market, faced adverse weather, heightened competition, and macroeconomic challenges, leading to a shift from mainstream to value beer. In China, sales continued to decline due to macroeconomic weaknesses and government austerity measures, affecting the on-premise channel. These factors contribute to the uncertainty surrounding the company’s future performance, justifying the Hold rating.
According to TipRanks, Moskow is a 3-star analyst with an average return of 1.8% and a 44.35% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as Campbell Soup, Conagra Brands, and Celsius Holdings.