Goldman Sachs: Downgrades BUD APAC target price to 8.4 yuan, expects last quarter's loss to expand to 58 million USD

AASTOCKS
2026.01.12 02:56

Goldman Sachs published a research report, lowering the earnings per share forecast for Budweiser APAC (01876.HK) for 2025 to 2027 by 5% to 9%. The main considerations include ongoing business investments leading to an increase in sales and management expense ratios, weakened operating leverage, and related expenditures on large platforms. The target price has been reduced from HKD 8.9 to HKD 8.4, but the "Buy" rating is maintained.

Goldman Sachs expects that Budweiser APAC's overall natural revenue for the fourth quarter of 2025 will decline by 6.6% year-on-year, EBITDA will drop by 37.6% year-on-year, and net losses will widen to USD 58 million (compared to a loss of USD 16 million in the same period last year). For the full fiscal year 2025, natural EBITDA growth in Eastern Asia Pacific is expected to be 0.2%, while it will decline by 14.8% in Western Asia Pacific.

Goldman Sachs stated that Budweiser APAC currently corresponds to a forecast price-to-earnings ratio of 25 times for 2025/2026, with an enterprise value multiple (EV/EBITDA) of 7 times and 6 times, and forecast dividend yields of 5.6% and 5.7% for 2025/2026. The new 12-month target price has been lowered from HKD 8.9 to HKD 8.4, with other assumptions remaining unchanged, indicating that its 2025 EV/EBITDA is approximately 7 times, while AB InBev's EV/EBITDA is about 10 times. The "Buy" rating for Budweiser APAC is maintained

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