Although Wall Street experts have been bullish on Anheuser-Busch InBev (NYSE: BUD), the parent company of Bud Light, and the months-old outrage over the controversial campaign for its flagship beverage has started to die down, its stock price is still recording declines.
As it happens, the BUD stock has continued to decrease in value, having dropped over 7% in the last month and adding up to the loss of nearly 18.5% recorded in the past six months, according to the most recent information retrieved by Finbold on October 20.
Bud Light stock price analysis
Indeed, the price of the Bud Light stock at press time stood at $53.01, which represents a modest increase of 0.04% in the last 24 hours but a loss of 0.75% across the week, as well as being down 7.69% over the previous month, and losing 18.47% in the past six months.
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Taking into account its technical analysis (TA), the support area for BUD stock presently stands between $46.08 and $53.02 while encountering resistance between $57.68 and $64.73, the zone it needs to break out of to give it strength for an upward move.
That said, the Wall Street analysts at TipRanks remain bullish on the price of the BUD stock, almost unanimously rating it as a ‘Strong Buy’ with a high forecast of $76.00 and a low price forecast of $66.30, as well as an average price target of $69.70, which represents an increase of 31.49% from its current price.
Attempting a comeback
Meanwhile, in a bid to recover, Anheuser-Busch has started to offer large incentives to distributors to keep its beers on store shelves after a scandal with the commercial starring transgender influencer Dylan Mulvaney led to boycotts across the United States.
Reportedly, the company is offering distributors as much as $150 million this year, which includes reimbursements for certain freight and fuel surcharges, as well as an additional five days for settling their bills to the brewery. It has also decided to extend a financial aid package to distributors that began in June.
On top of that, Anheuser-Busch told distributors affected by the Bud Light controversy that it was also starting a “market share recovery incentive” program in the second half of 2024 through the end of next year, according to Beer Marketer’s Insights via New York Post.
Interestingly, in September, Bill Gates’s Foundation Trust made headlines after having purchased 1.7 million shares of the embattled beer manufacturer, and Vivian Azer, the managing director and senior research analyst at investment bank TD Cowen, gave it an ‘outperform’ rating shortly after the purchase.
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