AB InBev: Bryan Garnier recommends buying the shares

(CercleFinance.com) - Bryan Garnier recommended buying shares of AB InBev on Friday, with a "fair value" of 112 euros, saying the brewer is sitting "on top of the world.
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The broker highlights a very efficient, high-margin company and a great cash generator with balanced operations between developing (60% of revenues) and developed (40%) markets.

"This cash is then used to invest in growing its business organically (it has the highest organic revenue growth of all major fast moving consumer goods (FMCG) companies) and to acquire other businesses, improve their efficiency and use the new bigger size to enhance its existing operations," Bryan Garnier points out in a research note.

However, given the company's debt situation after the SABMiller acquisition, the M&A driver has been temporary put on hold, the broker notes.

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