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Investing.com - Morgan Stanley reduced its price target on Anheuser-Busch InBev (NYSE:BUD) to $79.00 from $81.50 on Tuesday, while maintaining an Overweight rating on the brewing giant.
The investment bank adjusted its estimates following Anheuser-Busch’s third-quarter results, cutting its organic volume growth forecast for fiscal year 2025 from -1.4% to -2.4%. Morgan Stanley also adopted a more cautious outlook for the first half of 2026, reducing its FY26 organic volume growth projection to 0.4% from 1.1% previously.
Despite volume concerns, Morgan Stanley slightly increased its FY25 organic EBITDA growth estimate from 5.3% to 5.5%, citing better-than-expected Q3 results. The firm trimmed its FY26 EBITDA growth forecast from 6.7% to 6.1%, reflecting the more cautious volume outlook.
The revised estimates include higher projected financial expenses due to increased hedging costs related to the Brazilian real (BRL). These adjustments resulted in Morgan Stanley reducing its earnings per share estimates by 3.2% for FY25 and 2.4% for FY26.
Morgan Stanley noted its updated EPS projections remain above Visible Alpha consensus estimates by 1.1% for FY25 and 3.9% for FY26, despite the downward revisions to its price target.
In other recent news, Anheuser-Busch InBev announced a $15 million investment in its U.S. brewery, part of a broader $300 million initiative to boost manufacturing jobs in the United States. This development comes amid efforts to increase domestic production. RBC Capital has maintained its Outperform rating on Anheuser-Busch InBev, despite the company potentially falling short of its medium-term organic EBITDA growth target for the third or fourth quarter of 2025. RBC expects the company to narrowly meet its full-year 2025 target. Meanwhile, TD Cowen has adjusted its price target for Anheuser-Busch InBev to EUR55.40 from EUR56.00, maintaining a Hold rating due to volume pressures in key markets. The firm noted a positive shift in the company’s U.S. market share, although consumer demand in the U.S. beer category has declined. These updates provide investors with insights into Anheuser-Busch InBev’s current financial strategies and market challenges.
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