Opinions
Rick Stuchberry
Ambev S.A.
ABEV-N
BUY
Jan 23, 2014
$7.000
Stock price when the opinion was issued
breweries
beverages
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BUY
The beer business is a nice steady business, and the consolidation in the industry is where the money has been made. There are a couple of monster brewers out there that own a lot of the breweries. However, underneath that, there are a lot of craft brewers that are taking market share. He wouldn’t have any qualms in owning this, and it has a reasonable yield. It doesn’t meet his requirements of growth plus dividends.
breweries
beverages
BUY
Allan Tong’s Discover Picks Ambev doesn’t receive much coverage in this hemisphere, but the stock has beaten or come in line in the past year and pays a 0.77% dividend though is fairly stable at a 1.11 beta. Historic returns have been negative (-34.63% over three years) but are improving at a 4.62% one-year return. Ambev trades at a 22.21x PE (Diageo trades at 30.79x). Since last November, Ambev has enjoyed two analyst upgrades, who offer two buys, one hold and one sell at a price target of $3.75 for shares that just climbed above $3.00. Read 3 Consumer Stocks for Summer for our full analysis.
breweries
beverages
World cup this summer which is good. It has a big dividend and is a good income stock. Thinks this thing should do better as the summer progresses. It is a good income producer for him. They have to, by legislation, payout 35% of income. If he were to sell it would be before the world cup and then get back in.