Despite the recent consumer backlash which saw sales of Bud Light fall, analyst Mitch Collett of Deutsche Bank urged investors to buy Anheuser-Busch InBev stock (NYSE:BUD), even if Bud Light sales don’t fully recover. Collett and his team have upgraded Anheuser-Busch shares from hold to buy and increased their price target from €59 ($64) to €60 ($65).
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While recent data shows the company’s U.S. business down by 12%, Deutsche Bank’s analysis shows that ABI isn’t losing its place on store shelves; rather, it’s the sales rate that’s declining, a situation that could improve if consumer sentiment shifts. Deutsche Bank’s own survey found a substantial percentage of Bud Light consumers are likely to return to the brand within three to six months, reinforcing their confidence in ABI’s future performance.
Overall, analysts have a Moderate Buy consensus rating on BUD stock based on five Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $68.43 per share implies 18.73% upside potential.