Ambev SA Upgraded by Morgan Stanley to Overweight (ABEV)
Ambev SA (NASDAQ:ABEV) was upgraded by equities research analysts at Morgan Stanley from an “equal weight” rating to an “overweight” rating in a research note issued to investors on Tuesday, StockRatingsNetwork reports. The firm currently has a $8.00 price target on the stock. Morgan Stanley’s price objective suggests a potential upside of 10.34% from the company’s current price.
The analysts wrote, “We calculate that AmBev’s free cash flow fell to R$7.6 billion last year, but that it will increase to R$13 billion in 2014 and R$15 billion in 2015 – or a free cash flow yield of 5-6% – thanks to stable capex and lower working capital. At 9% of sales, AmBev’s capital spending is the highest of global brewers and is likely at a peak level.” Some highlights from the report included: -”We see an improved outlook for ABEV into 2014, as beer volumes resume growth and as cost pressures abate.”-”We forecast that ABEV’s earnings/EBITDA will grow 16%/11% over 2013-16 in local currency terms (10%/5% in US$ terms), with above-trend growth in 2014.”
Separately, analysts at Zacks downgraded shares of Ambev SA from an “outperform” rating to a “neutral” rating in a research note to investors on Tuesday, November 26th. They now have a $7.90 price target on the stock.
Ambev SA (NASDAQ:ABEV) traded up 3.87% during mid-day trading on Tuesday, hitting $7.25. 19,490,802 shares of the company’s stock traded hands. Ambev SA has a 52 week low of $6.636 and a 52 week high of $9.296. The stock has a 50-day moving average of $7.2 and a 200-day moving average of $7.38. The company has a market cap of $70.279 billion and a P/E ratio of 162.33.
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