Barclays Downgrades AB InBev to Equal Weight on Brazil Sin Tax and World Cup Headwinds

BUD2.89%
According to Barclays, on July 27, the investment bank downgraded AB InBev (NYSE: BUD) from overweight to equal weight, citing Brazil's new sin tax and fading World Cup effects as key risks. The new tax on unhealthy products is set to take effect in January 2026 and will impact 48% of Ambev's EBITDA, according to analyst Lawrence Wyett's report. The World Cup boost to beer consumption is expected to prove temporary, creating a challenging comparison base for future earnings. Barclays also flagged AB InBev's forward valuation as unsustainably high relative to competitors. The stock fell 0.97% to $80.87 following the downgrade.
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