Ambev S.A. (ABEV) is a well-run company that is highly levered to the global economy and global commodity markets in particular. With the majority of its activities in South and Central America, the company is also subject to currency, inflation, and political risks. With headwinds in front of it in 2019, including a slowing global economy and high inflation in some of its key markets (e.g., Brazil and Argentina), the company is currently a HOLD in my view.
Introduction
A Brazil-based company, ABEV is the largest of the Latin American brewers by total beverage volume