UBS upgrades AB InBev to Neutral, sees EBITDA upside

UBS upgraded AB InBev to Neutral from Sell with a price target of EUR 59, up from EUR 53, after assuming coverage of the name. The analyst sees upside risk to consensus fiscal 2024 organic EBITDA estimates from continued pricing in line with CPI and a strong margin recovery from easing cost headwinds. However, UBS is below consensus on fiscal 2024 organic volume in all AB InBev’s regions, which the firm believes may hold back the stock’s valuation multiple post the recent 15% outperformance over last three months.