Barclays cuts AB InBev, sees Brazil taxes and post-World Cup hangover weighing on 2027
BUZZ-Barclays cuts AB InBev, sees Brazil taxes and post-World Cup hangover weighing on 2027 ** Barclays cuts AB Inbev ABI.BR to "equal weight" from "neutral", saying earnings visibility has weakened for the coming year as new taxes loom in Brazil and World Cup-related tailwinds leave 2026 a tough act to follow
** A reform of Brazil's consumption tax regime, one of AB InBev's largest markets, is set to take effect in January 2027 and introduce new levies on products deemed harmful, with Barclays seeing risks skewed towards a materially higher tax burden for the brewer
** The broker lowers its PT by 14% to EUR 82, arguing the company's increasingly stretched premium valuation leaves limited room for disappointment
** "We continue to see ABI as a best-in-class brewer, but believe the combination of tax risk, weaker growth visibility and a premium valuation creates a less attractive risk-reward
profile," Barclays says** Out of 29 analysts that cover the American-Belgian brewer, 24 rate the stock "strong buy" or "buy," and five rate it "hold" - LSEG data
(Reporting by Jakob Van Calster)