Shares of beer maker Anheuser-Busch InBev (NYSE: BUD) stock, the parent company of Bud Light, have taken a significant drop in the last month as a conservative boycott continues to loom over the company after the drama around the Bud Light brands advertising ventures.
As Anheuser-Busch tries to move past the scandal, it continues to experience an ongoing decline in share price. Indeed, BUD stock is now trading at $61.06, -$3.86 (-5.95%) in the past month.
In the last month, BUD has been trading in the $60.88 – $66.56 range, with it currently trading near the lows of this range. A support level exists at $59.37 from a horizontal line in the daily time frame.
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On the other hand, a resistance zone exists from $62.56 to $64.31 and is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
Anheuser-Busch confident moving forward
Amidst a social media dispute involving the parent company of Bud Light, Michel Doukeris, the North American CEO at Anheuser-Busch, confidently stated that the company is fully prepared to handle the pressure. He attributed their readiness to their diverse global portfolio.
“With respect to the current situation and the impact of Bud Light sales, it is too early to have a full view — Bud Light’s volume decline… would represent around 1% of our overall global volumes for that period,” said Doukeris.
Despite facing repercussions from a conservative backlash in the United States over a social media promotion of Bud Light by a transgender influencer, Anheuser-Busch remains confident in its ability to meet its forecasted growth targets.
Anheuser-Busch reaffirmed its projections for the year 2023, stating that they anticipate core profit (EBITDA) to increase within the range of its medium-term forecasts, which is between 4% and 8%. Additionally, they expect their revenue to grow at a faster pace compared to their core profits.
Interestingly, Wall Street analysts have given BUD stock a buy rating with a 1-year price target for BUD shares at $69.88.
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