Street Calls of the Week
Investing.com - RBC Capital reiterated its Outperform rating on Anheuser-Busch InBev (NYSE:BUD) with a price target of EUR72.00 on Friday.
The global brewing giant may fall short of its medium-term organic EBITDA growth target of 4-8% in either the third or fourth quarter of 2025, according to RBC Capital’s analysis. Despite these potential quarterly misses, the firm expects the company to narrowly achieve its full-year 2025 target.
RBC Capital highlighted several challenges facing the brewer, including transactional currency headwinds estimated to impact EBITDA margins by approximately 70 basis points in the second half of 2025. Consumer lethargy throughout the Americas and China markets presents additional obstacles.
The investment firm noted that meeting annual targets despite these challenges would demonstrate Anheuser-Busch InBev’s operational resilience. RBC Capital also pointed to the potential for a share buyback program of at least $3 billion, even with an estimated $2.6 billion currency impact on debt.
RBC Capital cited the brewer’s "lowly valuation" as appealing, supporting its continued Outperform rating on the stock.
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