Goldman Sachs upgrades Anheuser-Busch stock to buy, predicts 30% gain

On May 12, 2025, Goldman Sachs analyst Olivier Nicolaï revealed an upgraded rating for Anheuser-Busch Inbev, changing it from neutral to buy. This decision came as the company showed potential for recovery in a challenging market environment, particularly highlighting the importance of the U.S. market moderation and a potential recovery in China. Nicolaï raised the price target for the company's U.S.-listed shares by $18, reaching a new target of $88. This projection indicates an approximate upside of 30.8% from the stock's last closing price. The analyst believes that Anheuser-Busch, known for brands like Corona and Bud Light, has the capability to return to its leading position in fast-moving consumer goods (FMCG). These improvements are said to arise from macroeconomic conditions favoring the company and the underappreciated leverage associated with managing its debt. The anticipated recovery, alongside potential 1.2% volume growth, could translate into an impressive 4.5% organic sales growth and an organic EBITDA growth of 7%, indicating strong financial performance if the company successfully navigates forthcoming economic challenges. The focus now shifts to the upcoming second-quarter earnings report expected in July, regarded as a significant catalyst for Anheuser-Busch's stock. However, notable risks still loom over this bullish perspective, including challenges faced from the Chinese market and the volatility in currency exchange rates. Nicolaï warns about the effects of a strengthening U.S. dollar which could undermine the company's profitability, although forecasts suggest further weakness for the dollar moving forward. Despite the positive revision, the shares slid 0.7% before the stock market opened, which follows a remarkable surge of more than 34% in share price since the start of the year, effectively erasing the previous year's losses of 22.5%. Overall, the sentiment among analysts remains optimistic, with a majority rating indicating a buy or strong buy stance on the stock.