Anheuser-Busch InBev, the world’s largest brewer, is not going through its stock market prime. Its shares fell 14% in the year and it is, together with Iberdrola and Prosus, the most bearish company in the EuroStoxx 50. It has lost nearly 15,000 million of capitalization and has gone from occupying sixth place to falling to tenth. The Spanish fell by 8.8%, while Prosus did it by 15.8% in the year.
Since their titles set annual highs at 65.85 euros in mid-June, they have not stopped falling, specifically 24% to 49 euros. Some drops that seem temporary if you pay attention to the estimates of the analysts.
The group of experts that follows it at Bloomberg set an upside potential of over 33% and predict that in the next 12 months it will reach 67.36 euros per share, levels that AB InBev has not seen since January 2020, before the pandemic. Despite the falls, the market believes that the brewery is a good buying opportunity.
The latter group includes experts from Société Générale and JP Morgan. The second revised down its position at the beginning of August, going from holding to selling and cut the target price by 35%, from 65 euros to the current 48. This would mean cuts in its price in the next year of still 4, 7%.
The brewery has been particularly affected by the Covid-19 crisis, so much so that its net profit was cut in 2020 to 1405 million, which is 84% less than in 2020 and falling back to 2016 levels, when it earned 1,241 million . Despite the fact that its profits will increase in the coming years, it will take at least five years to recover the pre-pandemic figures. The consensus of analysts predicts 8,989 million euros of profit for 2024, 2% less than in 2019 . It is these figures that JP Morgan likes the least: “We do not see a turning point in the momentum of earnings in the short term,” the US financier explained in a statement.