AB InBev's share price rose in sustained trading volumes on the Brussels stock exchange on Wednesday, with Jefferies hailing the beer giant's more favorable outlook.

At 2:00 pm, the stock gained 0.7%, compared with a 0.3% decline for the BEL 20 index.

In a note, Jefferies said it had raised its recommendation on the brewer from 'hold' to 'buy', with a price target raised from 56 to 70 euros.

After a period of extreme volatility, the outlook for the beer market is underestimated", the broker underlines in its note.

According to Jefferies, 2024 should be the first 'normal' year since 2019 and the introduction of Covid, which leads it to anticipate sales volume growth of 1% to 2% this year.

From AB InBev's point of view, this should translate into volume growth of 5% and sales growth of 15%, explains the broker, who consequently expects Ebitda to increase by 15% to 20%, which in turn should translate into higher shareholder remuneration and an increase in stock market value.

As for 'Bud Light', Jefferies believes that the brand could be upgraded from a 'problem' to a 'favorite' by regaining even a quarter of its recently lost sales, which would place it among the world's top three brands alongside Brahma Brazil and Michelob Ultra.

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