AB InBev downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Mitch Collett downgraded AB InBev to Hold from Buy with a price target of EUR 58, down from EUR 61. The analyst says that following two consecutive years of underperformance, it is time to be “slightly less” cautious on distillers. The firm continues to see downside risk to consensus estimates for Pernod, Diageo and Remy but recognizes that the valuation gap to brewers and soft drinks has narrowed. Brewers outperformed distillers in 2023 but share price performance in absolute terms and relative to soft drinks was disappointing, the analyst tells investors in a research note. Deutsche expects 2024 to be better due a combination of easy comparators and input costs.