{"id":2050245,"date":"2023-09-29T20:32:03","date_gmt":"2023-09-30T00:32:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysts-say-its-hard-not-to-be-negative-about-bud-light-as-stock-upgraded\/"},"modified":"2023-09-29T20:35:55","modified_gmt":"2023-09-30T00:35:55","slug":"analysts-say-its-hard-not-to-be-negative-about-bud-light-as-stock-upgraded","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysts-say-its-hard-not-to-be-negative-about-bud-light-as-stock-upgraded\/","title":{"rendered":"Analysts pessimistic about Bud Light despite stock upgrade."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanalysts-say-its-hard-not-to-be-negative-about-bud-light-as-stock-upgraded%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2050245&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>Analysts with Bank\u2064 of America this week upgraded Bud Light parent Anheuser-Busch InBev&#8217;s stock from neutral to buy but they stressed that in the United States, it&#8217;s \u201chard \u2064not\u2062 to be negative\u201d amid the monthslong Bud Light \u200bboycott.<\/p>\n<div class=\"my-5\">\n<p>Analysts with \u2064the bank lifted AB InBev its price target from $65 to $68, according to <a href=\"https:\/\/www.marketwatch.com\/story\/anheuser-busch-inbev-upped-to-buy-at-bank-of-america-921122f0#:~:text=Anheuser%2DBusch%20InBev%20BUD%20was,<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysts-say-its-hard-not-to-be-negative-about-bud-light-as-stock-upgraded\/\" title=\"Analysts pessimistic about Bud Light despite stock upgrade.\">higher%20cost%20of%20doing%20business<\/a>.&#8221; target=&#8221;_blank&#8221; rel=&#8221;noopener&#8221;>MarketWatch<\/a>. The costs of goods sold pressures have begun to ease on the brand, while\u2064 analysts cited how the brand \u2063is doing business in Latin America.<\/p>\n<\/div>\n<p>\u201cOver the last few years, [Anheuser-Busch InBev] has transformed its business\u2064 in many \u2062of its key markets (particularly in LatAm), \u2063with a more effective portfolio strategy, stepped-up \u2064innovation and \u200cdigitization\u2062 of its route-to-market with BEES (B2B), a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/transgender-runner-more-than-18-years-older-than-female-competitors-awarded-medal-after-finish\/\" title=\"Transgender runner, 18+ years older than female competitors, wins medal.\">clear competitive advantage<\/a>,\u201d said analysts led by Andrea Pistacchi.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n<a href=\"http:\/\/www.theepochtimes.com\/article\/bud-light-might-soon-lose-retail-shelf-space-amid-boycott-experts-5492477?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>Bud Light Might Soon Lose Retail Shelf Space Amid Boycott: Experts<\/h3>\n<p><\/a>\n<\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/15\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\">\n<a href=\"http:\/\/www.theepochtimes.com\/article\/bud-light-might-soon-lose-retail-shelf-space-amid-boycott-experts-5492477?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n<\/div>\n<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n<a href=\"http:\/\/www.theepochtimes.com\/article\/bud-light-owner-caves-to-pressure-over-horse-backlash-5496229?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>Bud Light Owner Caves to Pressure Over Horse Backlash<\/h3>\n<p><\/a>\n<\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">9\/21\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\">\n<a href=\"http:\/\/www.theepochtimes.com\/article\/bud-light-owner-caves-to-pressure-over-horse-backlash-5496229?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"my-5\">\n<p>But they cautioned that it&#8217;s \u201chard not to \u2064be negative\u201d about the brand&#8217;s U.S. volume\u200c outlook. They predicted\u200c that the permanent profit damage to Anheuser-Busch InBev due to the Bud Light backlash may \u2064exceed $1 billion, <a href=\"https:\/\/www.cnbc.com\/2023\/09\/29\/bofa-upgrades-bud-sees-margins-expanding-as-brewer-leaves-bud-light-backlash-behind.html\" target=\"_blank\" rel=\"noopener\">CNBC reported<\/a>.<\/p>\n<\/div>\n<p>Without the Bud Light problem, Ms. Pistacchi\u2062 estimated that the brewing giant could have boosted its margins by 30 basis points higher than its current forecasts.<\/p>\n<p>\u201cAgainst an uncertain global economic and consumer backdrop, we like [Anheuser-Busch InBev&#8217;s] exposure to LatAm (almost \u200c60% of \u200dgroup EBTDA), where economists are expecting only\u2063 a slight slowdown in private\u200c consumption,\u201d she wrote.<\/p>\n<div class=\"shortcode post-related-videos\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/div>\n<\/div>\n<p>Bud Light&#8217;s troubles started when it\u200d produced a beer can and offered a \u200cMarch Madness promotional campaign for transgender activist Dylan Mulvaney,\u200d who posted the beer can on social \u200cmedia in early April. A number of social media users led by conservative influencers reacted swiftly, calling for a boycott of the brand, causing sales of Bud Light to drop for consecutive weeks.<\/p>\n<p>Reports published in early September revealed that Bud Light&#8217;s sales\u200c were down about 30 percent nearly \u200dsix months after the Mulvaney controversy. One analyst said that it&#8217;s likely that a number\u200c of former \u200dBud Light customers likely \u2064will never purchase the brand again.<\/p>\n<div class=\"my-5\">\n<p>\u201cYou \u200csee Bud Light still just stubbornly down around 30 percent in volume compared to last year, which is where it\u2019s been since May or June,\u201d Beer Business Daily publisher Harry Schuhmacher told <a href=\"https:\/\/www.foxnews.com\/media\/beer-industry-expert-bud-lights-decline-looks-quasi-permanent-those-consumers-just-lost-forever\" target=\"_blank\" rel=\"noopener\">Fox\u2063 News<\/a> on Sept. 9. \u201cThat tells me that this is quasi-permanent, meaning\u200b those consumers are just \u200blost forever.\u201d<\/p>\n<\/div>\n<p>Mr. Schuhmacher noted at the time that industry analysts\u200d believed the\u2062 Bud Light &#8220;would have rebounded by now, but it\u2063 hasn&#8217;t.&#8221;\u200c He&#8217;s now forecasting that Bud \u2063Light will\u2064 &#8220;lap the controversy in April or May 2024.<\/p>\n<p>\u201cIt\u2019s actually worse than just lost sales because now it\u2019s getting to the\u200d point where it\u2019s becoming systemic within the industry, and they\u2019re \u2063losing the confidence of the retailers, and that\u2019s when it starts getting bad,&#8221; he warned.<\/p>\n<div class=\"post-figure\">\n<figure style=\"width:600px\" class=\"alignnone\"><figcaption>A 12-ounce can of Bud Light on a railing at the World Equestrian Center in Ocala, Fla. on May 26, 2023. (T.J. Muscaro\/The Epoch Times)<\/figcaption><\/figure>\n<\/div>\n<p>Noting that the Bud Light backlash is &#8220;nothing like we&#8217;ve seen in the beer industry,&#8221;\u00a0 Bud Light is likely to face a &#8220;rough\u2062 winter,&#8221; according \u200bto\u200d Mr. Schuhmacher. \u201cThey\u2019re somewhat powerless to fix it, except to remain really active in their local communities, which they\u2019ve done and which they\u2019ve always done. And really, that\u2019s kind of the only saving grace for \u200dthat brand is those local connections that the wholesalers have.&#8221;<\/p>\n<div class=\"my-5\">\n<p>However, a survey carried out in mid-August by Deutsche Bank analysts \u2064found \u2063that about 15 percent of Americans who had boycotted the beer had returned, although that\u2064 has not been reflected \u200bin Bud Light&#8217;s sales figures, reported the <a href=\"https:\/\/nypost.com\/2023\/08\/17\/bud-light-wins-back-15-of-boycotting-beer-drinkers-survey\/\" target=\"_blank\" rel=\"noopener\">New York Post<\/a>.<\/p>\n<\/div>\n<p>\u201cThe proportion of former\u200b Bud Light drinkers who are say they are very unlikely \u200bto buy the brand in 3-6 months time has reduced from 18 percent to just 3 percent, a significant improvement,\u201d the Deutsche Bank analysts wrote.<\/p>\n<div class=\"my-5\">\n<p>In the meantime, Bud Light has once again pivoted to\u200b creating promotionals around NFL and college football games. This month, the firm announced that \u200bit would be bringing tailgate parties to a number of different college football games this season.<\/p>\n<h2>Other Issues?<\/h2>\n<p>Meanwhile, other analysts and industry insiders told <a href=\"https:\/\/abcnews.go.com\/Business\/bud-light-set-lose-shelf-space-major-retailers\/story?id=103165753\" target=\"_blank\" rel=\"noopener\">ABC News<\/a> on \u200bSept. 15 that Bud Light is now slated to lose shelf \u2064space at retailers across the United States if it cannot post an increase in sales amid the boycott.<\/p>\n<\/div>\n<p>&#8220;During a busy shopping period on a Friday or Saturday night, if you don&#8217;t have the beer \u2063available cold on \u200bthe shelf, consumers pick something else,&#8221;\u2064 said former Anheuser-Busch InBev executive Anson Frericks, now a frequent critic of Bud Light.<\/p>\n<p>Shelf space, he added, is &#8220;the single largest determinant of sales in a store,&#8221; concluding: &#8220;There will be a dramatic shift.&#8221;<\/p>\n<p>In\u2064 the\u2062 midst of the \u2064sales declines, analysts say that Modelo Especial, a rival beer\u200d owned by New York-based Constellation Brands, is now the \u2064top-selling brand\u2064 in the United States, surpassing Bud Light\u200c earlier this year. Bud Light had reigned as the No.\u200d 1 beer \u2063for decades prior to 2023, \u200danalysts noted.<\/p>\n<p>The Epoch Times\u2063 contacted\u2062 AB InBev for comment on Friday.<\/p>\n<\/div>\n<\/blockquote>\n<p> <\/p>\n<h2> Why did Bank of America\u200c upgrade Anheuser-Busch InBev&#8217;s stock from neutral to buy?<\/h2>\n<p><span>  M\/2023\/09\/30\/bank-of-america-upgrades-anheuser-busch-inbev-stock-to-buy.html&#8221; \u200ctarget=&#8221;_blank&#8221;\u200b rel=&#8221;noopener&#8221;>CNBC<\/a> reported.<\/p>\n<\/div>\n<p>The\u200c Bud Light\u2063 boycott in the United States has been ongoing for several months, and it \u200bposes significant challenges for Anheuser-Busch InBev, the parent company of Bud Light. However, despite this boycott, analysts at Bank of America \u2063have upgraded\u200b the stock of Anheuser-Busch InBev from neutral to buy. This decision \u200bcomes after the bank lifted its price target for \u2062the company from $65 to $68.<\/p>\n<p>One of the \u2062primary reasons for this upgrade is the improvement in the costs of goods \u200csold pressures for the brand. These pressures\u2064 have started to ease, which is\u2062 a\u2064 positive development for the\u200b company. Additionally, the \u2062analysts highlighted the company&#8217;s success in Latin \u2064America. Over the past few years, Anheuser-Busch \u2062InBev has implemented\u2062 effective portfolio\u2062 strategies,\u2064 increased \u200binnovation and digitization, and improved \u2064its route-to-market with BEES (B2B). \u200cThese \u2064factors have given the company a clear competitive advantage in the region.<\/p>\n<p>However, despite the bullish outlook, the analysts remained cautious about the brand&#8217;s\u200c future performance in the \u200dUnited States. They believe\u2062 that the \u200bBud Light boycott could have\u200b a significant\u200c and lasting impact\u200d on the company&#8217;s profit. They estimated \u2064that the permanent \u2063damage caused by\u200b the Bud Light backlash could exceed $1 billion.<\/p>\n<p>The Bud\u200c Light boycott has gained significant \u2063attention and has led to \u2062discussions about the potential \u2064loss of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bud-light-might-soon-lose-retail-shelf-space-amid-boycott-experts\/\" title=\"Experts predict that Bud Light may face a loss of retail shelf space due to an ongoing boycott.\">retail shelf space<\/a> for the brand. Experts have raised concerns that \u200dthe ongoing\u2063 boycott\u200d could lead\u2063 to Bud\u2062 Light losing its place on retail shelves, further affecting its sales and market share.<\/p>\n<p>Furthermore, the\u2062 boycott has also put pressure on Anheuser-Busch InBev to \u200baddress the concerns raised by critics. In\u200c response to the backlash, the\u200c company has made changes to its policies and business practices. For example, it \u2064recently caved\u2063 to pressure over horse backlash and made adjustments to\u200c its marketing \u2063campaigns.<\/p>\n<p>Overall, the decision by Bank\u2062 of America to upgrade Anheuser-Busch InBev&#8217;s stock reflects the\u2063 bank&#8217;s confidence in the company&#8217;s ability\u200b to navigate\u200c the \u2064challenges \u200cpresented \u200bby the Bud Light boycott. The improvements in the costs of goods \u2063sold and the company&#8217;s successful strategies in Latin America are positive\u2063 indicators for its future performance. However, the ongoing boycott in the United\u2062 States remains an area of concern, with potential\u200b substantial financial consequences for Anheuser-Busch InBev.<\/p>\n<p>As the situation \u200bcontinues to unfold, it will\u2064 be crucial for the company to address the \u200bissues raised by the boycott and\u200b regain the trust of\u2062 its consumers. Only time will tell whether the upgrades to \u2062the stock were justified and\u200c whether Anheuser-Busch InBev can effectively overcome the challenges posed by the \u200cBud\u200b Light boycott.<\/p>\n<p>References:<\/p>\n<ol>\n<li><a href=\"https:\/\/www.marketwatch.com\/story\/anheuser-busch-inbev-upped-to-buy-at-bank-of-america-921122f0#:~:text=Anheuser%2DBusch%20InBev%20BUD%20was,higher%20cost%20of%20doing%20business.\" target=\"_blank\" rel=\"noopener\">https:\/\/www.marketwatch.com\/story\/anheuser-busch-inbev-upped-to-buy-at-bank-of-america-921122f0#:~:text=Anheuser%2DBusch%20InBev%20BUD%20was,higher%20cost%20of%20doing%20business.<\/a><\/li>\n<li><a href=\"https:\/\/www.cnbc.com\/2023\/09\/30\/bank-of-america-upgrades-anheuser-busch-inbev-stock-to-buy.html\" target=\"_blank\" rel=\"noopener\">https:\/\/www.cnbc.com\/2023\/09\/30\/bank-of-america-upgrades-anheuser-busch-inbev-stock-to-buy.html<\/a><\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bank of America analysts upgraded Anheuser-Busch InBev&#8217;s stock from neutral to buy, but expressed concerns about the ongoing Bud Light boycott in the US. They raised the price target for AB InBev from $65 to $68.<\/p>\n","protected":false},"author":58,"featured_media":2050246,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2050245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2050245","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/58"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2050245"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2050245\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2050246"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2050245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2050245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2050245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}