Will BUD stock make a comeback?
Anheuser-Busch InBev shares have experienced a wild ride this year.
Following Mulvaney’s promotion of Bud Light on social media on April 1, BUD stock dropped 20% over two months, wiping out billions of dollars in market cap.
However, starting from late October, the stock began to climb back up. Trading at $62.05 apiece, Anheuser-Busch shares are actually up around 4% this year.
The company’s business performance has also shown positive signs. In the third quarter of 2023, Anheuser-Busch’s revenue grew 5% year over year to $15.6 billion. Notably, the company delivered revenue growth in approximately 80% of its markets.
When asked about the Bud Light PR crisis during the earnings conference call, CEO Michel Doukeris informed analysts that, according to the company’s latest research, 40% of “lapsed buyers” indicate they are ready to come back and “open to drink Bud Light again.”
“This gives us some certainty that we are moving in the right direction,” he remarked.
Some Wall Street experts also appear to be bullish on the stock.
For instance, JP Morgan analyst Celine Pannuti has an “overweight” rating on Anheuser-Busch and a price target of $79, implying a potential upside of around 27% from where the stock sits today.
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