AB InBev: Conf call feedback and updating forecasts
NEUTRAL, Fair Value EUR109 (0%)
After poor Q1 numbers we are lowering our 2016 revenue and EBIT by about 2/3% which assumes that the business (especially Brazil and US) picks up in the coming quarters as per guidance from the company. On the call there was also some update on the state of the SABMiller process, but there was no clarification on why suddenly also the Central and Eastern European SABMiller assets are put up for sale. We read it as if the company is getting nervous about South African clearance and desperately want the European regulator Phase1 approval, out of fear that the South African one would continue to seek postponements (not such a good sign).
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