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Fly News Breaks for February 28, 2020
Feb 28, 2020 | 07:37 EDT
Guggenheim analyst Laurent Grandet lowered the firm's price target on AB InBev to $90 from $97 due to lower earnings estimates following the company's "soft" Q4 and weaker FY20 guidance. However, he reiterates a Buy rating on the shares, telling investors that he believes the core business is healthier than the company's guidance implies. He is encouraged that the U.S. is improving and Brazil seems more stable excluding currency headwinds and commodity pressures, although Grandet said China is now the primary risk due to the coronavirus outbreak and he suspects the stock could remain under pressure as coronavirus fears play out. Still, following the sharp pullback after earnings, Grandet recommends investors accumulate AB InBev shares, especially on weakness.