(News Bulletin 247) – Royal Bank of Canada announced on Wednesday that it had lowered its price target on Anheuser-Busch InBev, reduced from 73 to 69 euros, while maintaining its ‘outperformance’ opinion on the title.
In a research note, RBC points out that the controversy surrounding Bud Light’s latest US marketing campaign has had ‘calamitous’ effects from almost every perspective.
This finding leads him to predict a 37% drop in current operating income (EBITDA) for the Bud Light brand this year and, consequently, a 25% drop in EBITDA for the North American business.
“We believe that this debacle is exceptional and that it will not affect AB InBev’s activities outside the United States,” adds the analyst, who says he considers the 23% discount on which process the title.
It is this valuation deemed ‘attractive’ which justifies that it still displays a positive opinion on the value, he specifies.
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