World: Morgan Stanley upbeat on AB InBev stock but cuts target due to exchange rates
On Monday, April 8 Morgan Stanley made an adjustment to the price target for Anheuser-Busch InBev shares, reducing it slightly to $68.50 from the previous $69.00. Despite this change, the firm maintained its Overweight rating on the stock. The revision reflects the latest market data and currency exchange rates, with minor tweaks to the beverage giant's operational estimates, Investing.com reported.
The analyst noted that the global volume forecast for the fiscal year 2024 experienced a slight increase of 0.09%. Additionally, the organic growth rate for revenue and EBITDA was adjusted to accommodate the effects of hyperinflation on pricing, which did not alter the absolute forecasts.
The analyst's evaluation also took into account an assumed increase in non-interest financial expenses due to the devaluation of the Naira, projecting an additional $200 million cost for the fiscal year 2024.
As a result of these updates, the anticipated earnings per share (EPS) for Anheuser-Busch InBev have been revised, showing a 1% decrease for the fiscal year 2024 and a 1% increase for the fiscal year 2025. These changes in forecasted financials have led to the new price target of $68.50.
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