AB InBev: RBC Capital Markets cuts target price.

(CercleFinance.com) - RBC Capital Markets maintains its "underperform" rating on AB InBev, based on worries relating to the brewer's Brazilian business and a general lack of volume growth.


While RBC states that it is a "big admirer" of AB InBev's management, the broker believes that the good things are largely factored into investors' expectations, although that "the negatives are not."

"Declining volume, falling marketing/sales and capital expenditure below depreciation doesn't sound like a recipe for outperformance," RBC writes in a research note.

As a result, RBC has reduced its target price from 92 euros to 90 euros.

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