Analysts at JPMorgan had some bad news for Anheuser-Busch’s management and stockholders, according to a report from MarketWatch Tuesday.
Jared Dinges of JPMorgan said they expected to see earnings before interest and tax to drop by a little more than a quarter this year.
That number, 26%, was in line with NielsenIQ data cited by the outlet, which put early May’s sales of Bud Light down 23.6%.
And some of those numbers may never recover.
“We believe there is a subset of American consumers who will not drink a Bud Light for the foreseeable future,” the analysts told MarketWatch.
However, they also said that there is some home home for Anheuser-Busch InBev stock, which has been priced assuming an even larger drop in EBIT — meaning that the stock could be bargain-priced right now.
Recently, Bud Light has offered a big rebate on a case of beer, an offer that essentially makes the beer free to