Ambev SA

ABEV3: BVMF (BRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	BRL 64.96	Wyw	Ktgczvpkvm

Ambev Undervalued as it Beats on the Top Line in Q1

Philip Gorham

May 6, 2022

Ambev beat our forecasts on the top line in the first quarter of 2021, as the consumer appears to be more willing to accept higher prices than we had initially expected, but ferocious cost pressure meant that operating profit was only modestly above our estimate. We are reiterating our wide moat rating and BRL 18 fair value estimate for Ambev, and as of the close of trading on May 4, the market value of the shares offered significant upside to our valuation.

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