- Bernstein expects a top line miss out of Anheuser-Busch InBev (NYSE:BUD) on organic volume weakness when it reports earnings on July 30. The firm forecasts -29.8% organic sales growth vs. -23.0% consensus.
- "We expect 2Q20 to be the low point of the COVID-19 crisis for ABI, with the disruption seen in March across key markets replicated for almost a full quarter. The US should be relatively resilient, as we have seen a strong off-trade beer uplift (although we do not expect it to fully offset the on-trade volume declines)," notes analyst Trevor Stirling.
- Stirling warns that Brazil is looking very weak for BUD, as is Colombia. He also notes that Mexico, Peru and South Africa have experienced complete production/consumption bans.
- The long-term view from Bernstein is still positive with an Outperform rating on BUD kept in place and price target of $78.60.
- Shares of Anheuser-busch InBev are up 0.50% premarket to $54.35.