Brazil brewer Ambev falls on Santander, Citi downgrades

Ambev SA

22/01/2025 14:12

** Shares in Brazilian brewer Ambev  ABEV3.SA  fall as analysts
at Santander and Citi downgrade their recommendations on the
stock to "Neutral"
    ** Santander analysts say the downgrade comes as cost
inflation and capacity in the sector rise
    ** "We expect margins to fall across all business units as
the real depreciation, coupled with an increase in aluminum
prices and labor costs, could lead to higher costs," they said
    ** Citi analysts say challenges are mounting for Ambev and
the stock's current discount to global peers may not be a
sufficient catalyst
    ** "Slowing volumes, modest pricing gains, and diminishing
cost tailwinds from FX and commodity trends present headwinds,"
Citi says
    ** Santander lowers its price target for Ambev shares to
12.00 reais from 16.00 reais, while Citi reduces its target to
11.80 reais from 14.50 reais
    ** Ambev's shares fall more than 2% to 11.02 reais, among
the biggest fallers on Brazil's benchmark Bovespa stock index
 .BVSP , which is near flat 
    ** Ambev is controlled by Anheuser-Busch InBev  ABI.BR 

 (Reporting by Gabriel Araujo)
 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))