Stock Markets
Anheuser-Busch stock holds Buy rating on growth trajectory
On Monday, Jefferies maintained a positive stance on shares of Anheuser-Busch InBev (ABI:BB) (NYSE:BUD), reiterating a Buy rating and a price target of €70.00. The firm expressed confidence in the brewer’s future, noting improved clarity on its growth trajectory after a period marked by significant market fluctuations.
The outlook for Anheuser-Busch InBev has become more optimistic as the company demonstrates stronger execution and potential for margin recovery. With 2024 anticipated to be the first “normal” year since the pandemic began in 2019, and with cost pressures expected to ease, Jefferies anticipates a more visible framework for mid-single-digit (MSD) sales growth and high-single-digit (HSD) EBITDA growth.
Jefferies highlighted the consistency in Anheuser-Busch InBev’s performance and the prospect of increased cash returns as key drivers for a potential double-digit total shareholder return (TSR) and a market re-rating.
The firm’s analysis suggests that Anheuser-Busch InBev’s calendar year 2025 price-to-earnings ratio stands at 15.2x, in contrast to the staples sector average of 17.9x. This comparison underscores the perceived undervaluation of the company’s shares relative to the broader sector.
Anheuser-Busch InBev’s stock performance and investor sentiment in the coming months will likely be influenced by the company’s ability to deliver on these expectations and demonstrate sustained growth and profitability in a post-pandemic market environment.
In other recent news, Anheuser-Busch InBev reported a promising start to 2024, with a 6.7% increase in net revenue and a 5.4% growth in earnings before interest, taxes, depreciation, and amortization (EBITDA).
The company’s digital initiatives have generated $465 million in gross merchandising value of non-API products in the first quarter. Anheuser-Busch has also completed a $1 billion share buyback program, with an additional $200 million executed in direct share buybacks.
In other developments, UBS upgraded Anheuser-Busch’s stock from Neutral to Buy and raised the price target to EUR72.00, reflecting the firm’s anticipation of an improvement in the company’s performance across several key metrics.
UBS outlined potential upside risks to Anheuser-Busch’s margins and free cash flow for the fiscal years 2024 and 2025, predicting more than a 7% increase in margins and a 16% rise in free cash flow.
These recent developments seem to indicate a positive trajectory for Anheuser-Busch. However, the company is facing challenges in the Chinese market due to weather and macroeconomic conditions. Despite these challenges, Anheuser-Busch remains confident in its long-term market potential.
InvestingPro Insights
As Anheuser-Busch InBev (NYSE:BUD) navigates through a post-pandemic market, current InvestingPro data underscores key financial metrics that align with Jefferies’ optimistic outlook. The company’s market capitalization stands at a robust $118.53 billion, reflecting investor confidence. Notably, BUD has maintained an impressive gross profit margin of 53.89% over the last twelve months as of Q1 2023, reinforcing its strong position in the Beverages industry and supporting the potential for margin recovery mentioned by Jefferies.
The stock’s P/E ratio, adjusted for the last twelve months as of Q1 2023, is 21.87, which is below the sector average, indicating that the company could be undervalued as suggested. Furthermore, the consistency in Anheuser-Busch InBev’s performance is exemplified by its ability to maintain dividend payments for 24 consecutive years, with a notable dividend growth of 64.95% over the last twelve months as of Q1 2023, which could be attractive to income-focused investors.
For those considering a deeper dive into Anheuser-Busch InBev’s financial health, InvestingPro offers additional insights. There are 6 more InvestingPro Tips available, including the fact that analysts predict the company will be profitable this year and the RSI suggesting the stock is currently in oversold territory.
To explore these valuable tips, interested readers can visit: https://www.investing.com/pro/BUD. Moreover, for a limited time, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to comprehensive analysis tools and insights that could inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
By Maggie Fick and Ahmed Aboulenein
WASHINGTON (Reuters) – Members of Donald Trump’s presidential transition team are laying the groundwork for the United States to withdraw from the World Health Organization on the first day of his second term, according to a health law expert familiar with the discussions.
“I have it on good authority that he plans to withdraw, probably on Day One or very early in his administration,” said Lawrence Gostin, professor of global health at Georgetown University in Washington and director of the WHO Collaborating Center on National and Global Health (NS:) Law.
The Financial Times was first to report on the plans, citing two experts. The second expert, former White House COVID-19 response coordinator Ashish Jha, was not immediately available for comment.
The Trump transition team did not immediately respond to a Reuters request for comment.
The plan, which aligns with Trump’s longstanding criticism of the U.N. health agency, would mark a dramatic shift in U.S. global health policy and further isolate Washington from international efforts to battle pandemics.
Trump has nominated several critics of the organization to top public health positions, including Robert F. Kennedy Jr., a vaccine skeptic who is up for the post of secretary of Health and Human Services, which oversees all major U.S. health agencies including the CDC and FDA.
Trump initiated the year-long withdrawal process from the WHO in 2020 but six months later his successor, President Joe Biden, reversed the decision.
Trump has argued that the agency failed to hold China accountable for the early spread of COVID-19. He has repeatedly called the WHO a puppet of Beijing and vowed to redirect U.S. contributions to domestic health initiatives.
A WHO spokesperson declined to directly comment but referred Reuters to comments by WHO Director-General Tedros Adhanom Ghebreyesus at a press briefing on Dec. 10 in which he was asked whether he was concerned that the Trump administration would withdraw from the organization.
Tedros said at the time that the WHO needed to give the U.S. time and space for the transition. He also voiced confidence that states could finalize a pandemic agreement by May 2025.
Critics warn that a U.S. withdrawal could undermine global disease surveillance and emergency response systems.
“The U.S. would lose influence and clout in global health and China would fill the vacuum. I can’t imagine a world without a robust WHO. But U.S. withdrawal would severely weaken the agency,” Gostin said.
U.Today – MicroStrategy has made headlines again by purchasing 5,262 BTC for approximately $561 million at an average price of $106,662 per BTC. The company now holds a staggering 444,262 BTC, accumulated at a total cost of approximately $27.7 billion, with an average purchase price of $62,257 per BTC.
Despite impressive returns of 47.4% since the beginning of the quarter and 73.7% since the beginning of the year, skepticism about the company’s strategy is growing.
It is believed that to sustain its purchases, MicroStrategy raises capital through methods such as issuing convertible and corporate bonds, securing credit lines and selling shares.
This cycle appears to operate as follows: shares are sold to acquire the cryptocurrency, and the rising price per BTC increases asset value, enabling further loans, which are then reinvested in more purchases.
Some observers warn that a significant decline in Bitcoin’s price or MicroStrategy’s stock could trigger a cascade effect. A sharp fall in MSTR shares would weaken the collateral backing its loans, potentially leading to forced asset sales, including BTC.
This scenario could exert downward pressure on the broader cryptocurrency market, as the company holds 2.2% of the global Bitcoin supply now.
Thus, while some view Michael Saylor’s approach as a bold bid to cement the cryptocurrency’s role in the financial system, others see it as unsustainable. History offers a cautionary note: in 2000, MSTR shares surged to $333 before plummeting 99%, a collapse that took 24 years to recover from.
National homebuilder ranked No. 12 on inaugural list ranking companies based on trust
SCOTTSDALE, Ariz., Dec. 23, 2024 /PRNewswire/ — With a longstanding reputation for trust, national homebuilder and land developer Taylor Morrison (NYSE:) (NYSE: ™HC) has been recognized by Forbes on their inaugural list of the Most Trusted Companies in America. The homebuilder ranked No. 12 out of 300 companies across all industries.
“There are few things more powerful than trust and it’s something we strive to earn amongst all company stakeholders, from our customers to our team members, our shareholders, and our local communities,” said Taylor Morrison Chairman and CEO Sheryl Palmer. “To be included on this esteemed list in its inaugural year is especially meaningful and these awards are important reminders of the relationships we’re building across all aspects of our business.”
Fueled by hundreds of millions of data points, the Most Trusted Companies in America list combines data on a wide range of factors across four categories: employee trust, customer trust, investor trust and media sentiment. The ranking was created in partnership with research companies HundredX, Signal AI and Glassdoor.
Taylor Morrison also earned the No. 67 spot on Forbes’ inaugural America’s Best Companies list. The ranking is Forbes’ most comprehensive company ranking to date and factored in ratings for financial performance, customer and employee satisfaction, cybersecurity, sustainability, companies’ remote work policies, media coverage and more. Forbes’ America’s Best Companies list assessed more than 60 metrics across 11 primary categories to identify which organizations excel across the board. Of the more than 2,000 U.S.-based publicly traded companies that were eligible, only 300 qualified for each list.
In addition to being named among the Most Trusted and Best Companies in America by Forbes, Taylor Morrison holds several additional accolades including being named on Newsweek’s America’s Most Responsible Companies and America’s Greenest Companies lists, U.S. News & World Report’s Best Companies to Work For list, the American Opportunity (SO:) Index, America’s Most Trusted ® Home Builder for nine years, Hearthstone’s 2021 BUILDER Humanitarian Award, and inclusion on the Fortune 500 list since 2021.
About Taylor Morrison
Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and resort lifestyle homebuyers and renters under our family of brands”including Taylor Morrison, Esplanade and Yardly. From 2016-2024, Taylor Morrison has been recognized as America’s Most Trusted ® Builder by Lifestory Research. Our long-standing commitment to sustainable operations is highlighted in our annual Sustainability and Belonging Report.
For more information about Taylor Morrison, please visit www.taylormorrison.com.
CONTACT:
media@taylormorrison.com
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