BUD is a buy thanks to its strong presence in emerging markets, says Deutsche Bank

Anheuser-Busch’s Growth in Emerging Markets Signals Steady Opportunity for Investors

Investing in a company is a bit like picking a sports team—you want players who can win in different kinds of weather, not just when the sun is shining. That’s why what’s happening with Anheuser-Busch InBev right now matters to anyone watching the stock market.

Why Investors Are Watching Anheuser-Busch InBev

Anheuser-Busch InBev, the company behind Budweiser, is getting a lot of attention from experts. Deutsche Bank, a big investment bank, recently said it thinks this company is a good buy. Why? Because over half of its sales and profits come from countries that are still growing fast, like Brazil and South Africa, instead of just relying on places like the U.S. and Europe.

This mix is important for investors. When one part of the world is having a tough time, the company has other places to lean on for growth. Think of it like a tree with roots in many spots—if one area dries up, the tree can still find water somewhere else.

Reasons to Be Bullish (Positive)

  • Strong in Emerging Markets: About 64% of Anheuser-Busch InBev’s sales come from fast-growing countries. These areas are often called “emerging markets.”
  • Profit Power: 61% of the company’s earnings before interest and taxes are also from these places, showing it’s not just selling more, but making more money there too.
  • New Drinks, New Growth: The company isn’t just about beer anymore. They’re selling more “beyond beer” drinks, like hard seltzers and canned cocktails, especially in the U.S. This helps if beer sales slow down.
  • Wall Street Likes It: According to LSEG data, 11 out of 12 experts who follow the stock say it’s a buy.
  • Stock is Up: Shares are already up 24% this year, showing investor confidence.

Reasons to Be Bearish (Cautious)

  • Drinking Less Beer: Fewer people are drinking alcohol, especially in the U.S. A Gallup poll found only 54% of Americans drank alcohol in 2025, the lowest in almost 90 years.
  • Developed Markets Are Tough: Sales in places like the U.S. and Europe aren’t growing much, and these areas face more rules and competition.
  • Currency Risks: Doing business in many countries means the company can lose money if those currencies get weaker compared to the dollar or euro.
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How This Fits Into the Bigger Picture

Companies with strong roots in emerging markets can sometimes do better than those focused only on the U.S. or Europe, especially when those developed markets slow down. A study by MSCI shows that emerging markets have grown faster than developed ones over the last 20 years, though they can be more unpredictable.

For investors, this means Anheuser-Busch InBev might help balance a portfolio, offering some protection if the U.S. or European economies hit a rough patch. But it also means being ready for ups and downs from things like changing currency values or shifts in what people want to drink.

Investor Takeaway

  • Diversify: If you want to reduce risk, look for companies like Anheuser-Busch InBev that earn money in lots of different countries.
  • Watch Trends: Keep an eye on how much people are drinking and what kinds of drinks are popular. Companies that adapt quickly can keep growing.
  • Don’t Ignore Risks: Remember, investing in emerging markets can bring bigger swings—both up and down.
  • Check Analyst Opinions: Most experts are bullish, but always do your own homework before buying any stock.
  • Review Your Portfolio: Think about how much “consumer staples” like food and drinks you want in your overall mix, especially if you’re already heavy in tech or other sectors.

For the full original report, see CNBC

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