BUD - Ambev: Discounted Valuation Compared To Competitors Makes No Sense
2024-05-08 15:53:40 ET
Summary
- Ambev's scale and global position is a major competitive advantage, as it mitigates specific risks in each country in which it operates.
- The company has good prospects for increasing margins due to the resilient nature of its market and the reduction in commodity prices that impact its cost.
- Despite presenting the highest efficiency and profitability among its competitors, the company is traded at a significant discount of 14.8% to its peers.
Investment Thesis
I recommend buying Ambev ( ABEV ) shares. Markets such as Brazil and Latin America should contribute in the short and medium term for the company to maintain revenue growth above 8.5% per year over the next 5 years. Furthermore, there are indications that the price of commodities that impact their cost, such as corn and wheat, should continue to fall....
Ambev: Discounted Valuation Compared To Competitors Makes No Sense