Ambev SA

ABEV3: BVMF (BRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	BRL 87.00	Rcdg	Vqwgkfpkg

Ambev Earnings: Brazil Remains Strong as Margins May Have Troughed

Philip Gorham

May 17, 2023

Ambev comfortably beat our operating income estimate in the first quarter of 2023 as margins began to recover from the severe inflationary pressures of recent quarters. We are reiterating our wide moat rating and our BRL 18 fair value estimate. We believe that a continued rebuilding of margins in Brazil could be key to unlocking the over 20% upside to our valuation, as at the close of trading on May 16.

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