Bud APAC's Shares Have Likely Priced in Near-Term Operating Challenges

Dow Jones10-30

0245 GMT - Budweiser Brewing Co. APAC's shares have likely priced in near-term operating challenges as the stock has fallen around 27% over the past six months, say DBS Group Research analysts in commentary. The beer brewer's China business remains under pressure, with a weak on-premise channel and unfavorable weather weighing on the division, the analysts say. However, the segment could improve sequentially as weather normalizes and in-home consumption gains traction, potentially supported by demand ahead of the Lunar New Year, they say. Bud APAC's India business remains a robust medium-term growth driver as its premium portfolio grows, they add. DBS maintains its buy rating and 7.10 Hong Kong dollar target price. Shares rise 3.5% to HK$5.86.

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