Deutsche Bank lifts Anheuser-Busch stock rating to buy

Published 03/03/2025, 12:08
Deutsche Bank lifts Anheuser-Busch stock rating to buy

On Monday, Deutsche Bank (ETR:DBKGn)’s analysts showed renewed confidence in Anheuser-Busch InBev (EBR:ABI:BB) (NYSE: BUD), upgrading the brewery giant’s stock rating from Hold to Buy. The firm also raised its price target on the stock to €75.00, a significant increase from the previous target of €55.00.

The optimism from Deutsche Bank stems from Anheuser-Busch InBev’s consistent performance and its ability to overcome external challenges. The analysts noted that the company is deserving of a higher valuation multiple thanks to its strong track record. They projected a 12-month price target of €75.00, which implies a forward P/E ratio of 18.5x and a free cash flow (FCF) yield of 5.9%.

Anheuser-Busch InBev is recognized for its emerging market growth, where it holds dominant market shares. Deutsche Bank highlighted the company’s digital leadership within the beer industry and its improving position in the United States market. Moreover, the analysts believe that Anheuser-Busch InBev is relatively insulated from the broader structural challenges facing the beverage industry.

The bank’s analysis also pointed to Anheuser-Busch InBev’s robust cash generation and the flexibility it has in using that cash. According to Deutsche Bank’s expectations, the company is likely to return approximately $30 billion to its shareholders during the fiscal years 2026 to 2028, which would represent about 25% of its market capitalization.

Investors and market watchers will be observing Anheuser-Busch InBev as it continues to navigate the global market, leveraging its strategic advantages and strong cash position to potentially deliver value to its shareholders as anticipated by Deutsche Bank’s upgraded assessment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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