AB InBev: Barclays upgrades stock

(CercleFinance.com) - Barclays has upgraded its rating on AB InBev shares to 'overweight' from 'equal weight', having increased its corresponding target price to 74 euros from 59 euros, seeing it as the only beverage stock in stocks it covers that could theoretically double in price in 2021.


In short, the broker believes that the market is significantly underestimating margin potential this year, which could be rectified in its Q1 2021 release on 6 May.

While the market is currently expecting the margin to fall in 2021, Barclays expects the brewer to be able to gain 170 basis points this year, partially recovering the 470 basis point decline seen in 2020.


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