The analyst praised BUD's valuation upside
Morgan Stanley named Anheuser-Busch Inbev SA (NYSE:BUD) a top pick, citing the beverage stock's valuation upside despite a near-term "mixed picture." In response, BUD is 0.9% higher at $64.22.
In addition to naming it a top pick, the analyst also hiked its price target to $73 from $68.50 and maintained its "overweight" rating. The majority of analysts are already bullish, with six of eight recommending a "buy" or better, while the 12-month target price of $71.89 is an 11.9% premium to the security's current perch.
Options traders are also bullish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), BUD's 50-day call/put ratio 3.52 ranks higher than 80% of readings from the past year.
Pacing for its fifth win in six sessions, Anheuser-Busch stock sports a respectable 10.3% quarter-to-date lead, though it's still saddled with a slim 0.7% year-to-date deficit. Shares are attempting to reclaim their May 17, more than two-year high of $67.49, and are today on track to close above the $64 mark for the first time since May 24.