The last two months have been nothing short of a disaster for Anheuser-Busch Inbev (NYSE:BUD). After its disastrous association with Dylan Mulvaney and the resulting fallout, shares plummeted, and some believe that Bud will never win back that lost market share. It got so bad at one point that Bud Light lost its status as the U.S.’ beer of choice to Constellation Brands’ (NYSE:STZ) Modelo Especial. But some are wondering if, perhaps, the worst is over, and RBC Capital Markets suggests a buying opportunity may be brewing alongside all that beer. As a result, BUD shares closed today’s session higher.
RBC Capital Markets took note of the controversy, and the collapse that followed, noting that a “nerve-wracking” buying opportunity was afoot. Essentially, RBC is taking the opinion that Bud has served its time and will be making a comeback soon. While the disaster has been pronounced, it also appears to be limited to the United States. That should mean that sales won’t be hit quite so hard, particularly with the rest of the world to prop them up.
And on a certain level, RBC does have real-world support for this supposition. Look at Garth Brooks and his new bar, Friends in Low Places. Brooks took a bit of a supportive stance for Bud Light here, noting that “every kind of beer” would be on hand. Brooks further noted that “inclusivity is always going to be me,” which suggested that, indeed, the beer would be there. But with Friends in Low Places facing its own boycott, that support may not be there for long.
Analysts are certainly not united on Anheuser-Busch Inbev stock’s chances of recovery here. With four Buy ratings and three Holds, BUD stock is a Moderate Buy by analyst consensus. Further, with an average price target of $68.43, it offers its investors 21.14% upside potential.