AB InBev price target lowered to $63, removed as a ‘Top Pick’ at Morgan Stanley

Morgan Stanley analyst Sarah Simon lowered the firm’s price target on AB InBev (BUD) to $63 from $68.50 and keeps an Overweight rating on the shares. The firm is updating estimates to reflect the latest scanner data in European and U.S. markets, as well as latest foreign exchange rates, which it says “have both a translational and transactional impact on profitability.” While the firm still sees AB InBev offering “very attractive” cash returns, growth and share price performance is likely to be second half weighted and it sees better near-term opportunities elsewhere in Beverages, so the stock was also removed as the analyst’s “Top Pick” in the space.