Anheuser-Busch InBev is approaching a margins inflection point, supporting a stock rerating for the world's largest beer maker, according to Bank of America.
The analyst added that the permanent profit hit, estimated to exceed $1 billion, from the Bud Light backlash in the U.S. this year is now part of the base case.
Without the Bud Light issue, Pistacchi estimates Anheuser-Busch could have expanded its margins by more than 30 basis points above its current forecasts.
U.S.-listed shares of AB InBev are down more than 10% this year as Bud Light sales took a hit.
BUD YTD mountain BUD in 2023 —CNBC's Michael Bloom contributed to this report.
Persons:
Andrea Pistacchi, Pistacchi, Bud, BUD YTD, BUD, —, Michael Bloom
Organizations:
Anheuser, Busch InBev, Bank of America, ABI, Argentine, Bud, Busch, InBev, Bud Light
Locations:
U.S, LatAm, . U.S