AB InBev Price Target Lowered to EUR 66 from EUR 70 at UBS

UBS has revised its price target for Anheuser-Busch InBev (AB InBev), lowering it to EUR 66 from the previous EUR 70. This change reflects a more cautious outlook on the company's near-term prospects, despite UBS still seeing a potential upside of 39% for the share of the Belgian owner of Stella Artois, Budweiser, and Corona beers. The analyst expects AB InBev to continue to be at the top end of its organic EBITDA growth range of 4-8% for 2025, with sales growth accelerating in the second half of the year.



The revision in the price target comes after UBS lowered its earnings per share (EPS) estimates for AB InBev. The exact details of the EPS revisions are not provided in the material, but it is mentioned that the EPS estimates were lowered. This reduction in EPS estimates, along with other factors, contributed to the reduction in the price target.

The change in price target by UBS could have various impacts on AB InBev's stock valuation, including lowered expectations, potential changes in analyst consensus, investor sentiment, and re-evaluation of valuation metrics. Investors may reassess their expectations for the company's future performance and potentially adjust their own price targets or valuation metrics accordingly. The lower price target implies that UBS expects AB InBev's stock to appreciate less than previously anticipated, which could lead to a temporary decrease in AB InBev's stock price.

In summary, UBS's revision of its price target for AB InBev reflects a more cautious near-term outlook on the company, while still maintaining a positive long-term perspective. The change in price target could have various impacts on AB InBev's stock valuation and investor sentiment, but the actual impact would depend on various factors, including the company's fundamentals and broader market conditions.