Stock of the Day

March 12, 2020

Anheuser-Busch InBev SA/NV (BUD)

$54.01
+$0.86 (+1.6%)
Market Cap: $95.52B

About Anheuser-Busch InBev SA/NV

Anheuser-Busch InBev SA/NV produces, distributes, exports, markets, and sells beer and beverages. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois; Beck's, Hoegaarden, Leffe, and Michelob Ultra; and Aguila, Antarctica, Bud Light, Brahma, Cass, Castle, Castle Lite, Cristal, Harbin, Jupiler, Modelo Especial, Quilmes, Victoria, Sedrin, and Skol brands. The company operates in North America, Middle America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1366 and is headquartered in Leuven, Belgium.

Anheuser-Busch InBev SA/NV Bull Case

Here are some ways that investors could benefit from investing in Anheuser-Busch InBev SA/NV:

  • The stock is currently priced at $47.99, which is near its twelve-month low of $45.94, potentially offering a buying opportunity for investors looking for value.
  • Recent upgrades from analysts, including a "strong-buy" rating from Evercore ISI, suggest positive sentiment and potential for stock price appreciation.
  • Institutional investors own 5.53% of the company's stock, indicating confidence from large financial entities in the company's future performance.
  • The company has a market capitalization of $86.25 billion, which reflects its size and stability in the beverage industry, making it a potentially safer investment.
  • With a price-to-earnings ratio of 14.81, the stock may be considered undervalued compared to industry peers, suggesting potential for growth.

Anheuser-Busch InBev SA/NV Bear Case

Investors should be bearish about investing in Anheuser-Busch InBev SA/NV for these reasons:

  • TD Cowen recently cut their target price from $65.00 to $55.00, indicating a lack of confidence in short-term price recovery.
  • The company's current ratio of 0.69 suggests potential liquidity issues, meaning it may struggle to cover short-term liabilities with its current assets.
  • With a debt-to-equity ratio of 0.85, the company has a significant amount of debt compared to its equity, which could pose risks in a rising interest rate environment.
  • Recent trading volumes have been below average, which may indicate a lack of investor interest or confidence in the stock.
  • Despite recent upgrades, the mixed ratings from analysts, with some holding a "neutral" stance, reflect uncertainty about the company's future performance.

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