On Monday, Morgan Stanley (NYSE:MS) made an adjustment to the price target for Anheuser-Busch InBev (NYSE:BUD) shares, reducing it slightly to $68.50 from the previous $69.00. Despite this change, the firm maintained its Overweight rating on the stock. The revision reflects the latest market data and currency exchange rates, with minor tweaks to the beverage giant's operational estimates.
The analyst noted that the global volume forecast for the fiscal year 2024 experienced a slight increase of 0.09%. Additionally, the organic growth rate for revenue and EBITDA was adjusted to accommodate the effects of hyperinflation on pricing, which did not alter the absolute forecasts.
The analyst's evaluation also took into account an assumed increase in non-interest financial expenses due to the devaluation of the Naira, projecting an additional $200 million cost for the fiscal year 2024.
As a result of these updates, the anticipated earnings per share (EPS) for Anheuser-Busch InBev have been revised, showing a 1% decrease for the fiscal year 2024 and a 1% increase for the fiscal year 2025. These changes in forecasted financials have led to the new price target of $68.50.
InvestingPro Insights
As Anheuser-Busch InBev adapts to the dynamic global financial landscape, recent data from InvestingPro underscores the company's robust position in the market. With a strong market capitalization of $118.87 billion and an adjusted price-to-earnings (P/E) ratio of 21.2, BUD shows a solid footing in terms of investor valuation. The company's impressive gross profit margin of 53.86% over the last twelve months as of Q4 2023 further highlights its efficiency in generating revenue relative to costs.
InvestingPro Tips reveal that Anheuser-Busch InBev is not just a prominent player in the Beverages industry, but it has also maintained dividend payments for an impressive 24 consecutive years, with a dividend growth of 54.13% over the last twelve months. This consistency is a testament to the company's financial health and commitment to returning value to shareholders. Additionally, analysts predict the company will be profitable this year, which aligns with the Overweight rating from Morgan Stanley.
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