Decline in Alcohol Consumption: The percentage of U.S. adults consuming alcohol has dropped to a multi-decade low of about 54%, with significant declines among younger adults under 35, influenced by changing health perceptions and the rise of no- and low-alcohol alternatives.
Spending Trends: Bank of America reported an 8.6% year-over-year decline in spending at U.S. alcohol stores, with younger generations like Gen-Z and Millennials showing the largest decreases in alcohol-related purchases.
Health Consciousness and Social Changes: Increased awareness of health risks associated with alcohol, along with economic pressures and shifts in social behaviors, such as earlier socializing and online engagement, are contributing to reduced alcohol consumption.
Market Implications and Industry Shifts: The decline in alcohol consumption is affecting major beverage companies, prompting non-alcoholic brands to enter the alcohol market, while traditional alcohol companies explore new product lines, indicating potential for future mergers and acquisitions in the sector.
Wall Street analysts forecast BUD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BUD is 75.00 USD with a low forecast of 75.00 USD and a high forecast of 75.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast BUD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BUD is 75.00 USD with a low forecast of 75.00 USD and a high forecast of 75.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 69.260
Low
75.00
Averages
75.00
High
75.00
Current: 69.260
Low
75.00
Averages
75.00
High
75.00
Barclays
Overweight
maintain
2025-12-11
Reason
Barclays
Price Target
AI Analysis
2025-12-11
maintain
Overweight
Reason
Barclays raised the firm's price target on AB InBev to EUR 94 from EUR 88 and keeps an Overweight rating on the shares. The firm believes growth of ride-hailing and robotaxi services in the United States could boost alcohol sales. The impact has the potential to be significant and come sooner than the market anticipates, the analyst tells investors in a research note.
Morgan Stanley
Overweight
to
NULL
downgrade
2025-12-08
Reason
Morgan Stanley
Price Target
2025-12-08
downgrade
Overweight
to
NULL
Reason
Morgan Stanley lowered the firm's price target on AB InBev to EUR 66.50 from EUR 68 and keeps an Overweight rating on the shares.
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Deutsche Bank
Buy
to
Hold
downgrade
2025-11-28
Reason
Deutsche Bank
Price Target
2025-11-28
downgrade
Buy
to
Hold
Reason
Deutsche Bank downgraded AB InBev to Hold from Buy with a price target of EUR 59, down from EUR 64.
Deutsche Bank
Hold
to
Buy
upgrade
2025-11-28
Reason
Deutsche Bank
Price Target
2025-11-28
upgrade
Hold
to
Buy
Reason
Deutsche Bank adjusted ratings in the European beverages group as part of its 2026 outlook. The firm upgraded Heineken (HEINY) to Buy from Hold while downgrading AB InBev (BUD) to Hold from Buy. Following a challenging year for share prices, the European beverages sector "offers clear valuation opportunities," the analyst tells investors in a research note. The firm sees "material upside if companies can deliver." Deutsche prefers names less affected by structural headwinds as well as companies that can deliver reasonable growth in 2026. "Buying the least worst option should work," the firm contends.
About BUD
Anheuser-Busch Inbev SA is a Belgium-based company. The Company is primarily engaged in the manufacturing of beer. The Company operates through six segments: North America, Middle Americas, South America, EMEA, Asia Pacific, Global Export and Holding companies. The Company's brand portfolio includes global brands, such as Budweiser, Corona and Stella Artois; international brands, including Beck's, Leffe and Hoegaarden, and local champions, such as Bud Light, Skol, Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske, Cass and Jupiler. The Company's soft drinks business consists of both own production and agreements with PepsiCo related to bottling and distribution arrangements between its various subsidiaries and PepsiCo. Ambev, which is a subsidiary of the Company, is a PepsiCo bottler. Brands that are distributed under these agreements are Pepsi, 7UP and Gatorade.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
