AB InBev price target lowered to $68.50 from $70 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on AB InBev to $68.50 from $70 and keeps an Overweight rating on the shares. The firm updated its estimates ahead of Q2 results to reflect latest scanner data and on-trade color in a number of markets, including the U.S., Europe and China. Overall, Morgan Stanley sees the U.S. as now at an inflection point in terms of volumes, and expects a year-on-year improvement in the second half of the year. China has been softer than anticipated, with negative weather and flooding in several markets, which has also affected Q2 price/mix, although the firm sees the “premiumization trend” as intact on a medium-term basis.