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JPMorgan double upgrades AB InBev with transition ‘well underway’
The Fly

JPMorgan double upgrades AB InBev with transition ‘well underway’

JPMorgan analyst Jared Dinges upgraded AB InBev to Overweight from Underweight with a price target of $70, up from $45. The analyst sees "scope for earnings outperformance" and says the company’s "rapidly deleveraging balance sheet provides optionality." AB InBev’s transition to a "higher-quality top-line growth story is well underway," Dinges tells investors in a research note. The analyst models 8.8% organic sales growth in fiscal 2023, supported by sustainable Latin America momentum, and "contrary to investor concerns" he sees upside in the U.S. and China. The company can deliver EBITDA growth above its medium term guide in 2023 "with best-in-class" teens earnings growth from 2023 onwards, Dinges contends. He views AB InBev’s valuation as attractive at current levels.

Published first on TheFly

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