Anheuser Busch InBev SA/NV Poised for Growth: Buy Rating Backed by Market Recovery and Financial Strategy

Anheuser Busch InBev SA/NV (0RJI – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Olivier Nicolai from Goldman Sachs upgraded the rating on the stock to a Buy and gave it a €78.00 price target.

Olivier Nicolai has given his Buy rating due to a combination of factors that suggest Anheuser Busch InBev SA/NV is poised for growth. The company is expected to experience a resurgence in its market position, with anticipated volume growth of 1.2% as challenges in the US market lessen and the Chinese market shows signs of recovery. Additionally, Anheuser Busch InBev is projected to achieve a 4.5% increase in organic sales driven by its strong brand portfolio, notably Corona, and a 7% growth in organic EBITDA, which aligns with the higher end of its guidance.
Nicolai also highlights the macroeconomic advantages and the benefits of debt reduction that are not fully recognized by the market consensus. The anticipated acceleration in deleveraging by FY25/26, aided by a weaker US dollar and controlled capital expenditures, is expected to enhance the company’s financial flexibility. This financial strategy is projected to improve earnings per share similarly to an increase in share buybacks. Nicolai’s valuation of the stock is attractive, with a 12-month price target set at €78/$88, supported by a compelling price-to-earnings ratio and a free cash flow yield that surpasses its peers.

In another report released on May 9, Barclays also maintained a Buy rating on the stock with a €80.00 price target.