For the first time in a while, there’s actually good news for beer stock Anheuser-Busch Inbev (NYSE:BUD). In fact, shares gained modestly in Wednesday morning’s trading now that a strike is no longer a concern for the firm and likely won’t be for the next five years.
The Teamsters Union, which was close to going on strike last week, voted on the new proposed contract, which came back 86% in favor. Many of the issues that the Teamsters had with earlier versions of the contract seem to have been wiped out here, and now, the employees will have a significant pay hike, better healthcare and retirement benefits, and even protections for job security. Union members will get an immediate $4 per hour pay hike in the first year, eventually climbing an extra $8 an hour, along with more pension contributions, some formerly lost retirement benefits, and a $2,500 ratification bonus.
Frantically Trying to Recover
Anheuser-Busch offered up a big new pile of benefits to keep the teamsters on hand, but not everyone was so happy. Despite massive support from the rank-and-file, the World Socialist Web Site referred to the contract as a “sellout deal” that will actually cost jobs. Given Anheuser-Busch’s latest earnings report, a mixed bag by any standard, that may not be pure hyperbole.
Meanwhile, Anheuser-Busch recently teamed up with dating site Plenty of Fish in a bid to drive its Busch label up. The new deal includes brand new limited edition Fishing Cans and the Fish Pic Badge, which lets fishing-loving singles show off their hobby in their dating profiles.
Is Anheuser-Busch Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BUD stock based on one Buy and one Hold assigned in the past three months, as indicated by the graphic below. After a 2.77% rally in its share price over the past year, the average BUD price target of $76 per share implies 24.93% upside potential.
