BUD stock rose in morning trade on October 28, 2021, after the company reported beats in EPS and revenue.

AB InBev reports Q3 normalized EPS 79c, consesus 66c

Reports Q3 revenue $14.27B versus the consensus estimate of $13.8B. In 3Q21, total volumes grew by 3.4%, with own beer volumes up by 2.8% and non-beer volumes up by 7.8%. In 9M21, total volumes grew by 11.9% with own beer volumes up by 12.1% and non-beer volumes up by 10.7%. Normalized EBITDA increased by 3.0% in 3Q21 and by 14.5% in 9M21. CEO Michel Doukeris said: “During the third quarter, we delivered top- and bottom-line growth versus both 2020 and pre-pandemic levels of 2019 driven by relentless execution, investment in our brands and accelerated digital transformation. As a result of our performance and our continued momentum we are raising the bottom-end of our EBITDA guidance.”

AB InBev exploring sale of some German beer brands, Bloomberg reports

On October 4, 2021, AB InBev is working with an adviser to explore a sale of some of its German beer brands, Eyk Henning, Jan-Henrik Forster and Thomas Buckley of Bloomberg reports, citing people familiar with the matter. The portfolio of regional brands could be valued at $1.2B, sources told Bloomberg. Discussions are ongoing and there’s no certainty that AB InBev will decide to proceed with a sale of the German brands, they added. “We continuously assess our options to optimize our business and drive growth,” a spokesperson for AB InBev told Bloomberg in an emailed statement.

BUD stock upgraded to Buy from Hold at Deutsche Bank

On September 16, 2021, Deutsche Bank analyst Mitch Collett upgraded BUD stock to Buy from Hold with a EUR 60 price target. The analyst cites a low valuation for the upgrade following the recent selloff. The recent pullback stems from worries over inflation, the company’s high debt and the overhang of Altria’s (MO) 10% stake, Collett tells investors in a research note. At current levels, AB InBev is trading at “close to a trough” price-to-earnings multiple relative to European staples, says the analyst.

BUD Stock Technical Analysis

The technical rating of BUD is bad and it also does not present a quality setup at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts of when BUD stock is a good entry.

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