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Morgan Stanley updates AB InBev estimates, raises price target to $73.50

Morgan Stanley raised the firm’s price target on AB InBev to $73.50 from $73 and keeps an Overweight rating on the shares. The firm, which is updating its estimates to reflect the latest forex moves, scanner data and management commentary, is lowering its organic sales growth view for FY24 from 4.2% to 3.7%, primarily reflecting a tougher industry environment in the U.S., but at the profitability level continues to believe that AB InBev will beat guidance of 4%-8% organic EBITDA growth, the analyst tells investors.

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