Bernstein Increases Price Target#
Bernstein SocGen Group has raised its price target for Anheuser-Busch InBev stock (NYSE:BUD) from $100.00 to $103.00, while maintaining an Outperform rating. Currently, the stock is trading at $80.37, close to its 52-week high of $81.60, following a notable 28% increase over the past six months.
Strong First-Quarter Results#
The firm highlighted the company’s first-quarter 2026 results, which revealed solid growth in sales volume and a favorable price mix. This growth occurred despite increased spending on advertising and promotions, as well as challenges from foreign exchange rates. The company's gross profit margin stood impressively at 55.93%, helping to keep overall profit margins stable during the quarter.
Regional Performance Insights#
In the United States, the hard seltzer market has rebounded after a period of decline, with the Beyond Beer portfolio experiencing significant growth. Additionally, beer markets in Latin America and South Africa reported solid to strong volume growth. However, China and Argentina continue to face declines, although there have been improvements in recent months. Bernstein anticipates that the upcoming FIFA World Cup will positively impact sales in the second and third quarters.
Future Outlook#
Bernstein noted that the current gap between U.S. seltzers and hard seltzers is expected to reverse in the fourth quarter. Furthermore, foreign exchange hedges are anticipated to provide a boost in the latter half of the year. Overall, Bernstein's analysis suggests that the stock may be undervalued compared to its Fair Value, indicating potential for future growth.
In other news, AB InBev's strong performance in the first quarter of 2026 exceeded Wall Street's expectations, with earnings per share reaching $0.97, surpassing the forecast of $0.91. Revenue also exceeded estimates, reaching $15.27 billion, attributed to robust global operations and strategic initiatives.