AB InBev (BUD, $73.65) Gets a Rating Upgrade from RBC Capital Markets Analyst
RBC Capital Markets upgraded its recommendation of beverage maker AB InBev, following the latter’s debt refinancing.
Shares of the world’s biggest beer company got upgraded to a top pick rating by RBC analyst James Edwardes Jones. Jones indicated that AB InBev’s debt is under control, especially after the company refinanced parts of it.
After AB InBev borrowed a record $75 billion to buy SABMiller in 2016, the former’s debt level peaked at $100 billion. In January, AB InBev issued $15.5 billion in corporate bonds to pay off some of the debt due for repayment between 2021 and 2024 as well as 2026. Jones said, "The recent refinancing was sensible," and added, "It has replaced peaks of debt repayment with a smoother schedule which, at current exchange rates, should be doable from free cash flow, while significant appreciation in the US$ would be manageable."
Jones also suggested that AB InBev’s valuation should be gauged by its price-to-earnings ratio (which is relatively less expensive in this case) versus its enterprise value/EBITDA (relatively expensive) ratio. He cited the beer company’s non-cyclicality as a reason.
Last year, AB InBev’s stock prices suffered declines, apparently due to concerns over the company’s decreasing beer sales coupled with its burgeoning debt.
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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
BUD's RSI Indicator ascending out of oversold territory
The RSI Indicator for BUD moved out of oversold territory on October 05, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 23 similar instances when the indicator left oversold territory. In 19 of the 23 cases the stock moved higher. This puts the odds of a move higher at 83%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 30 of 58 cases where BUD's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 52%.
Following a +2.98% 3-day Advance, the price is estimated to grow further. Considering data from situations where BUD advanced for three days, in 186 of 331 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.
BUD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 17, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on BUD as a result. In 37 of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 47%.
The Moving Average Convergence Divergence Histogram (MACD) for BUD turned negative on September 21, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 20 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 47%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BUD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 50%.
The Aroon Indicator for BUD entered a downward trend on October 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating for company is 32 (best 1 - 100 worst), which means the company is slightly undervalued. The valuation of the company is based on a proprietary formula which takes into account a set of fundamentals and gives us an estimate of the price per share for the company. We then compare this estimate with the current price per share. As a result, this company is rated as undervalued in the industry. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.624) is normal, around the industry mean (2.040). P/E Ratio (16.616) is within average values for comparable stocks, (16.716). Projected Growth (PEG Ratio) (1.583) is also within normal values, averaging (2.082). Dividend Yield (0.018) settles around the average of (0.034) among similar stocks. BUD's P/S Ratio (2.564) is slightly higher than the industry average of (1.539).
The Tickeron PE Growth Rating for this company is 40 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 48 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 54 (best 1 - 100 worst), indicating steady price growth. BUD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 68 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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a holding company whose subsidiaries manufactures and distributes alcoholic and non-alcoholic beverages
Industry FoodMeatFishDairy
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