Ambev downgraded to Neutral from Buy at Citi

Citi analyst Renata Cabral downgraded Ambev (ABEV) to Neutral from Buy with a price target of R$11.80, down from R$14.50. Despite the company’s “impressive execution” over the past five years, its “challenges are mounting,” the analyst tells investors in a research note. The firm believes Ambev’s current discount to its global peers may not be a sufficient catalyst amid slowing volumes, modest pricing gains, and diminishing cost tailwinds from currency and commodity trends. Additionally, rising competitive pressures in Brazil, driven by Heineken and Petropolis, constrain the company’s pricing pass thru, says Citi.