Breakingviews - Budweiser Offers Important Lessons from Its Major Deal
Written by Emily J. Thompson, Senior Investment Analyst
Source: Reuters
Merger Challenges: Anheuser-Busch InBev's acquisition of SABMiller for $110 billion has led to significant challenges, including declining brand loyalty, inflation, and a drop in market value, with the company now worth less than the purchase price.
Growth Struggles: AB InBev has experienced lackluster growth, with sales increasing by less than 2% over the past two years, and is facing pressure to diversify its product offerings or consider unwinding the merger to improve financial performance.
Analyst Views on KDP
Wall Street analysts forecast KDP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KDP is 34.58 USD with a low forecast of 26.00 USD and a high forecast of 42.00 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.
12 Analyst Rating
7 Buy
5 Hold
0 Sell
Moderate Buy
Current: 27.550
Low
26.00
Averages
34.58
High
42.00
Current: 27.550
Low
26.00
Averages
34.58
High
42.00
About KDP
Keurig Dr Pepper Inc. is a beverage company in North America that manufactures, markets, distributes and sells hot and cold beverages and single serve brewing systems. It has a portfolio of beverage brands, including Keurig, Dr Pepper, Canada Dry, Mott's, A&W, Penafiel, Snapple, 7UP, Green Mountain Coffee Roasters, GHOST, Clamato, Core Hydration and The Original Donut Shop, as well as the Keurig brewing system. Its U.S. Refreshment Beverages segment is a manufacturer and distributor of liquid refreshment beverages (LRBs). This segment manufactures and distributes concentrates, syrup and finished beverages of its brands and third-party brands, to third-party bottlers, distributors, retailers, and end consumers. Its U.S. Coffee segment is a manufacturer and distributor of single serve brewers, specialty coffee (including hot and iced varieties), and ready to drink (RTD) coffee. Its International segment includes sales in Canada, Mexico, the Caribbean and other international markets.
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.
