It finally seems like beer and beverage stock Anheuser-Busch InBev (NYSE:BUD) is on the verge of finally getting past the Dylan Mulvaney debacle and the resulting boycotts that followed. It’s not going to be the number one brand again any time soon, possibly never again, but there are some signs of life. However, those green shoots may be nipped in the bud with word of a new strike coming. And the news didn’t sit well with investors, who sent shares down nearly 2% in Wednesday morning’s trading.
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The latest reports suggest that Anheuser-Busch InBev might be facing a Teamsters strike on March 1. There were some tentative agreements reached back in November, but Anheuser-Busch has been quietly running out the clock until March in the meantime, reports note. There are no bargaining dates established, and with the tentative agreements set to run out, a strike may just be weeks away. In fact, Teamsters members have already voted on strike authorization back in December, and they’re ready to go.
A Strange Time for a Strike
By all reports, Anheuser-Busch was making a comeback. It was a long, slow process, and much of its audience is still smarting over Dylan Mulvaney. However, Anheuser-Busch managed to land two major new sponsorships in the last two weeks. Not only is it now a national marketing sponsor of Professional Bull Riding (PBR), but it’s also the first beer brand to be an Olympic sponsor in the 40 years that there have been sponsors for the Olympics. Why win these sponsorships? Why pay out the cash required to be a sponsor if you’re not going to ensure a supply of your product by preventing a Teamster strike?
Is BUD a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BUD stock based on three Buys and two Holds assigned in the past three months, as indicated by the graphic below. After a 6.65% rally in its share price over the past year, the average BUD price target of $74 per share implies 18.32% upside potential.
