AB Inbev: stock falls on broker downgrade

(CercleFinance.com) - The AB Inbev stock fell by nearly 3% at the end of trading yesterday.


Credit Suisse announced on Thursday that it had downgraded its rating on AB Inbev shares from "neutral" to "underperform" with a target price of 61 euros.

In a sector report, the broker said that it was concerned about the impact of rising financing costs on the brewer's EPS. In addition, the stock is also trading at a 20% premium in terms of P/E relative to its peers.

The analyst notes that the European beverage sector has devalued by 10% relative to consumer goods stocks in 2022, while he expects it to resist in 2023, on the back of price increases and strong performance in both emerging markets and the US.

Credit Suisse notes, however, that investors are concerned about the risk of disappointing volumes.


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