Our long-term recommendation on Companhia de Bebidas das Americas, or AmBev (ABV), is Outperform. We anticipate the company perform well above the broader market.
AmBev is the largest beverage company in South America and commands a strong portfolio of well-established flagship brands. Furthermore, the company continues to witness solid performance in the Brazilian market, which remains a key driver of top-line growth in the future.
Moreover, AmBev has taken initiatives to reduce its debt-levels and enhance financial flexibility, while consistently rewarding investors in the form of dividends and share buybacks. However, intense competition from established as well as regional and local players in its markets may limit the above-market performance of the company.Zacks Investment Research
