07:22 AM EDT, 10/08/2026 (MT Newswires) -- RBC Capital Markets raised its price target for Anheuser-Busch InBev (ABI.BR, ANH.JO), d/b/a AB InBev, arguing that investor skepticism regarding the Belgium-based brewer's margin and cash flow left the stock "meaningfully undervalued." "Reasons not to own AB InBev look threadbare. ABI dominates a category that is growing well in emerging markets - where the majority of its participation can be found; is benefitting from a currency tailwind; has BEES to provide a useful, though not transformational, fillip; and is a prodigious cash generator (although not to quite the extent implied by consolidated numbers)," according to a Thursday note. The research firm highlighted that currency fluctuations, which it said are often seen as a "pitfall" for AB InBev, are expected to boost margins by 50 basis points over the coming year. "ABI's margins are much higher than other international brewers, but that reflects its dominant competitive positions. We think those high margins are eminently justified," the note said. Additionally, while the full consolidation of AmBev "flatters" headline cash flow and leverage, analysts noted that adjusted free cash flow/net income still "comfortably" exceeds 100%, with net debt/EBITDA expected to fall "well below" 3x by the end of 2026. Within this context, RBC raised its price target to 95 euros from 93 euros and reiterated the stock's outperform rating.

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