Argus looking for more favorable entry point in AB InBev

Argus analyst Taylor Conrad keeps a Hold rating on AB InBev but notes that the firm is looking for a more favorable entry point. The company’s earnings have started to recover from the impact of the pandemic, and while the management has struggled to maintain margins, its sales growth is being driven by better pricing, expansion into new product categories, and the company’s “premiumization” strategy, the analyst tells investors in a research note. Argus adds that AB InBev has recently raised its dividend, but the payout remains well below the pre-pandemic level.