AB Inbev: HSBC downgrades after Bud Light crisis
(CercleFinance.com) - HSBC downgraded its rating on the AB Inbev stock from "buy" to "hold" on Wednesday, reducing its target price for it from E68 to E66.
The analyst explains that he wonders about the way in which the brewer found itself plunged into the crisis surrounding its Bud Light brand, and especially about the way in which it managed it.
According to figures from Beer Marketer's Insights, the fall in sales of Bud Light is expected to have intensified in April, with volumes down by over 25%.
HSBC adds that the group's relations with its US distributors has never been worse, according to industry consultants.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The analyst explains that he wonders about the way in which the brewer found itself plunged into the crisis surrounding its Bud Light brand, and especially about the way in which it managed it.
According to figures from Beer Marketer's Insights, the fall in sales of Bud Light is expected to have intensified in April, with volumes down by over 25%.
HSBC adds that the group's relations with its US distributors has never been worse, according to industry consultants.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.