We welcome the overdue measures to leverage its wide economic moat and extract more cash from the business, and we think the new financial targets are, for the most part, achievable.
Disposing of its food business should allow the narrow-moat company to materially enhance its pricing power as a consumer health pure play.
Growth is slowing, but we see profits improving.
Despite lower fiscal 2016 growth guidance, we expect medium-term margin expansion at the early life nutrition business to drive high-single-digit organic free cash flow growth over the next five years.
The pullback in AB InBev’s stock price is a compelling opportunity for long-term investors.
Anheuser-Busch represents one of the strongest franchises in global consumer staples, with a wide economic moat, and should appeal to long-term investors at today’s price.
Long-term drivers remain intact, and we expect the company's wide economic moat to ensure that current headwinds are temporary.
The deal, for a total consideration of $47 billion, or $56.50 per share, would slightly enhance British American Tobacco's competitive positioning.
The wide-moat firm offers a modest upside to our fair value estimate, though we recommend waiting for a wider margin of safety before building a position.
The acquisition gives this wide-moat consumer-product maker additional exposure to premium-priced products, which should round out the price mix of company's household and personal care portfolio.