"BUD's 6% weekly gain more than tripled the Consumer Staples sector ETF's 1.8% rise. Year-to-date, BUD is up 25.5% versus 15.2% for consumer staples broadly. Over the past year, the stock has surged 54%, crushing the sector's 13% return. Even competitor Molson Coors ( NYSE:TAP), which gained 2.8% this week, couldn't keep pace. BUD is capturing momentum that extends beyond simple sector rotation."
"Evercore ISI raised its price target from $75 to $100 on February 13, maintaining an Outperform rating. That's a 33% increase and implies 24% upside from current levels. Wells Fargo followed with two separate increases, first moving from $75 to $85 on February 9, then raising again to $88 days later. Goldman Sachs, Barclays, and JPMorgan all reaffirmed Buy ratings with price targets clustering between $77 and $94."
"The catalyst arrived Thursday morning when Anheuser-Busch Inbev reported Q4 EPS of $0.95, beating the $0.89 consensus by 7%. Revenue came in at $15.55 billion with organic revenue growth of 2.5% and EBITDA growth of 4.9%. This marks the fourth consecutive quarter BUD exceeded estimates. The company generated $11.3 billion in free cash flow last year while expanding margins by 101 basis points."
Anheuser-Busch InBev gained 6% this week, trading at $80.39 and approaching its 52-week high of $81.56. The stock has outperformed the consumer staples sector across multiple timeframes, rising 25.5% year-to-date and 54% over the past year. Analysts notably increased price targets, led by Evercore ISI boosting its target to $100 and several firms reaffirming Buy ratings, producing a $79.10 average target with nine Buy/Strong Buy ratings. Q4 results showed EPS of $0.95 versus $0.89 consensus, $15.55 billion revenue, 2.5% organic growth, 4.9% EBITDA growth, $11.3 billion free cash flow, and 101 basis points of margin expansion.
Read at 24/7 Wall St.
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