Nomura Securities Upgrades Anheuser-Busch InBev (BUD) to Buy

Nomura Securities upgraded Anheuser-Busch InBev (NYSE: BUD) from Neutral to Buy with a price target of $130.00 (from $106.00).

Analyst Edward Mundy commented, "We upgrade Anheuser-Busch InBev (ABI) to Buy from Neutral and raise our target price to EUR 130 from EUR 106. With agreement reached on the terms of a recommended transaction, we now incorporate SABMiller (Neutral) into our model; we expect earnings accretion in year 3 of 11%."

The analyst added, "On a three-year view, the deal acts as an earnings bridge to navigate through the current period of macroeconomic volatility – we forecast double-digit EPS growth for ABI over this period. Its record on business combinations and its results-driven culture give us confidence on delivery. A reputation of conservative financial guidance suggests some potential upside surprise."

For an analyst ratings summary and ratings history on Anheuser-Busch InBev click here. For more ratings news on Anheuser-Busch InBev click here.

Shares of Anheuser-Busch InBev closed at $120.13 yesterday.

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