For all those who thought beer stock Anheuser-Busch (NYSE:BUD) was a doomed brand, there’s hope yet for it out there. That’s what Deutsche Bank is saying, as it decided to stand by its rating and make it clear just why. It wasn’t good enough to push Anheuser-Busch higher, though, but it did make today’s losses merely fractional in Wednesday afternoon’s trading.
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Deutsche Bank—via analyst Mitch Collett—pointed out “strong global results” in the second quarter for Anheuser-Busch, which may sound ingenuous, but is actually quite true. The boycott that slapped Anheuser-Busch in the face was largely a U.S phenomenon. In fact, based on second quarter earnings, Anheuser-Busch’s total revenue was up 7.2% for the quarter thanks to that ongoing strength in the worldwide market. While total volume was down 1.4%, a slight price hike made up for the lack.
Collett’s optimism isn’t found everywhere. We know the catastrophe Budweiser faced at the Sturgis motorcycle rally, with its booth standing largely empty while surrounded by what should have been its target market. Bud’s critics are growing in name and importance; Kid Rock is already vocally on record against Bud, but so too, now, is Travis Tritt and John Rich of the group Big & Rich. Meanwhile, Anheuser-Busch heir Billy Busch announced plans to buy back the brand, should Anheuser-Busch Inbev decide to sell it like they did a range of brands to Tilray (NASDAQ:TLRY) just several days ago.
Anheuser-Busch is mildly a winner with analysts. With five Buy ratings and two Hold, Anheuser-Busch stock is considered a Moderate Buy. With an average price target of $68.10, that gives Anheuser-Busch a 23.29% upside potential as well.
