Following last year’s controversy, which led to a wide-scale boycott of its products and subsequent declines in the price of its stocks, Bud Light beer manufacturer Anheuser-Busch InBev (NYSE: BUD) seems to be turning a new page, and analysts have updated their price targets for BUD shares.
Specifically, Bud Light’s parent announced it was expanding its production “beyond beer” and boosting the capacity for beverages like Cutwater and Nütrl vodka seltzer, its two ready-to-drink canned cocktails, as well as introducing facility upgrades towards water conservation and cutting emissions.
Wall Street’s Bud Light stock price prediction
Meanwhile, in light of the new developments, several Wall Street analysts have recently revised their Bud Light stock price targets, including the team from Citi (NYSE: C), which set the new price target at €69 (~$77) from the previous €61 (~$68), raising the rating from ‘neutral’ to ‘buy.’
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Indeed, the financial institution expects Anheuser-Busch InBev to outperform its full-year 2024 organic EBITDA (earnings before interest, taxes, depreciation, and amortization) growth guidance, which ranges from 4% to 8% largely thanks to strong cost control measures for its United States operations.
At the same time, Morgan Stanley (NYSE: MS) analysts raised the price target on Anheuser-Busch InBev to $73.50 from $73 while maintaining an ‘overweight’ rating on BUD shares due to the company’s strong performance in the first half of the year and expectations of further profit growth in Q4.
Finally, Evercore ISI’s Robert Ottenstein retained his firm’s ‘buy’ rating for BUD stock, with a price target of $75, adding up to Wall Street’s joint position that these shares are a ‘strong buy,’ with the average Anheuser-Busch InBev stock target set at $76.61 for the next 12 months.
Bud Light stock price analysis
For the time being, the price of BUD stock stands at $66.29, reflecting a 0.45% increase on the day, a gain of 3.72% across the week, adding up to the 8.07% advance over the past month, and accumulating growth of 3.48% year-to-date (YTD), as per data on October 1.
As a reminder, the beer maker faced heavy conservative backlash in April 2023 after collaborating with transgender influencer Dylan Mulvaney on a Bud Light commercial, which led to boycott calls and significantly affected the sales of Anheuser’s popular beverage and stock price.
However, it seems that Wall Street experts are now confident of its strong recovery, as reflected in their strong BUD stock price targets. That said, trends in the stock market can easily change, so doing one’s own research and keeping up with relevant news is critical when investing.
