[ET Net News Agency, 31 July 2020] Goldman Sachs lifted its target price for Budweiser
Brewing (BUD APAC)(01876) to HK$29 from HK$26 and maintained its "buy" rating.
The research house said BUD reported an in-line 2Q results. Looking forward, Goldman
believes the steady recovery in China from nightlife channels and BUD's market share gain
in the in-home channel should drive the company back to double-digit organic EBITDA growth
in 2H.
Korea's gradually stabilizing business should no longer be a big drag into 2H either.
With better growth visibility, Goldman sees scope for BUD APAC to re-rate and catch up
with its local peers on valuation and stock performance.
It raised its EBITDA estimates by 1-2% for 2020-22 and now expects a 10% growth in 2H
following by a strong 32% rebound in 2021. (KL)