Bernstein said Bud Light volumes have further to fall, but is still optimistic on AB InBev’s stock going forward. The firm reiterated an outperform rating on Anheuser-Busch with a $71.60 price target, which represents upside of 30% from Monday’s close. Analyst Trevor Stirling noted that the massive selloff in the stock stemming from customer backlash over the company’s social media partnership with a transgender influencer was largely “overdone.” AB InBev shares are down more than 17% in the second quarter. BUD YTD mountain BUD in 2023 He noted that the company’s “Stub ABI” segment — which excludes Bud APAC and Ambev — is now trading at an all-time low multiple. “We believe this is an attractive entry point ahead, as raw material inflation eases and translates into better margins,” Stirling said. Still, he said Bud Light volumes could continue to take a hit after already falling by roughly 30% in the U.S. in the second quarter. “We also assume that Bud Light volumes will take a permanent -15% haircut with an associated drag on operating leverage,” the analyst said. Last month, HSBC downgraded Anheuser-Busch InBev stock over what the firm labeled a ” Bud Light crisis ,” and noted that the company could be contending with larger problems than it wants to admit. — CNBC’s Michael Bloom contributed to this report.
Bernstein says Anheuser-Busch InBev selloff is overdone even as Bud Light sales volumes are expected to drop
