Bank of America Securities Maintains a Hold on Ambev S.A. (ABEV)

Ambev S.A. (NYSE:ABEV) is one of the best undervalued stocks to buy under $50. Bank of America Securities analyst Isabella Simonato maintained a Hold rating on Ambev S.A. (NYSE:ABEV) on November 3. The rating update followed Ambev S.A.’s (NYSE:ABEV) fiscal Q3 results released on October 30, with net revenue (organic) for the quarter rising 1.2% compared to last year.

Management stated that a 7.4% net revenue per hectoliter growth drove top-line performance. In addition, normalized EBITDA rose by 2.9%, with all the company’s business units delivering growing or flat EBITDA. Normalized EBITDA margin expanded by 50 bps to 33.9%, attributed to effective revenue and costs management by the company.

Bolstered by cost management and effective revenue, gross margin also expanded by 10 bps to 51.5% and normalized EBITDA margin expanded by 50 bps to 33.9%. In addition, high cash taxes led to cash flow from operating activities to drop by 14.7% compared to R$8.108 billion in fiscal Q3 2024.

Ambev S.A. (NYSE:ABEV) produces, distributes, and sells beverages. Its offerings include carbonated soft drinks, beer, and other non-alcoholic and non-carbonated products. The company’s operations are divided into the following geographical segments: Brazil, Central America and the Caribbean (CAC), and Canada.

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Disclosure: None. This article is originally published at Insider Monkey.