StockNews.com Initiates Coverage on Ambev with Buy Rating

StockNews.com, a financial research firm, commenced coverage on Ambev (NYSE:ABEV), issuing a research note on Friday with a recommendation for investors to buy the stock. Ambev, well-known for its beverage products, has attracted the attention of several research analysts recently.

Analyst Ratings

Other notable research groups have also given their assessments of Ambev. Jefferies Financial Group launched coverage, suggesting a neutral stance with a hold rating, alongside a price target of $2.86. Citigroup chimed in with a buy rating, reflecting a positive outlook on the company's potential. TheStreet upgraded Ambev from 'c+' to 'b-', highlighting an improved valuation of the stock. Morgan Stanley shifted their view from underweight to equal weight, indicating a change towards a more balanced perspective. As a consensus, the stock has received an average rating of 'Moderate Buy' from the various firms, with a target price averaging around $3.30 as reported by MarketBeat.com.

Financial Performance

Recently, Ambev's stock opened at $2.67, showcasing a 52-week range between $2.40 and $3.23. The company's movement averages over 50 and 200 days stand at $2.80 and $2.78, respectively. Ambev holds a market capitalization of approximately $42.05 billion, bearing a P/E ratio of 14.83, a PEG ratio of 2.70, and a beta of 1.16. Liquidity ratios indicate a quick ratio of 0.79 and a current ratio of 1.11 with a minimal debt-to-equity ratio of 0.03.

In their latest quarterly report released on October 31st, Ambev announced earnings of $0.05 per share, exceeding estimates by $0.01. The company prides itself on a strong net margin of 18.24% and a return on equity of 17.95%. Revenue figures for the quarter stood at $4.16 billion. Looking forward, Ambev is projected to post an EPS of 0.18 for the current fiscal year.

Institutional Investment

Institutional investors have shown signs of changing their stakes in Ambev. Westwood Global Investments LLC increased its holdings by 3.1%, now owning 107,182,643 shares. Investment giants BlackRock Inc. and Goldman Sachs Group Inc. have also expanded their positions significantly. In particular, Goldman Sachs heightened its stake by a staggering 244.5% during the last reported quarter. Overall, institutional investors and hedge funds own about 8.37% of Ambev's outstanding shares.

About Ambev

Ambev operates through its subsidiaries, concentrating on producing and distributing a wide variety of beverages. The company's portfolio includes an array of popular brands such as Skol, Brahma, and Budweiser among many others, covering beer, non-alcoholic beverages, and food products. Their brands are recognized both locally and internationally, signifying a broad market presence.

Ambev, Stock, Analysis