Yesterday, we brought word about tobacco giant Altria (NYSE:MO) and its plans to sell part of its stake in Anheuser-Busch InBev (NYSE:BUD). But today, we see the fallout of that decision, and it’s every bit the disaster some might have feared it was for Anheuser-Busch InBev, plunging nearly 6% in Thursday afternoon’s trading.
The pullout prompted a small rush for the exits as other shareholders followed suit. It ultimately got so bad that trading in Anheuser-Busch InBev was briefly halted at the request of Belgium’s Financial Services and Markets Authority. Though Altria only sold about 35 million out of the 197 million shares it held at the time, it was still enough to prompt a mad dash.
Things Were Starting To Look Up…
This latest round of bad news came as Anheuser-Busch was enjoying some positive news. BUD managed to fend off a potential labor strike and even got a boost as former President Donald Trump came out to suggest that the brand deserved a “…second chance.” Yet, it was hard to deny that the fallout from the Dylan Mulvaney incident continues to be felt to this day. Indeed, Anheuser-Busch InBev brought out an earnings report littered with calamity, and most of it directly attributed to the boycott around Bud Light.
What Is the Price Target for BUD Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BUD stock based on two Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 3.28% rally in its share price over the past year, the average BUD price target of $74.50 per share implies 22.09% upside potential.
Read More: BUD Shares Plunge 6% as Altria (NYSE:MO) Offloads Shares