Anheuser-Busch InBev (ABI.BR): Exploring ABInBev's optionality following balance sheet restoration; Reiterate Buy

Goldman Sachs reiterates Buy on Anheuser-Busch InBev (ABI.BR) with a 12-month price target of €86.00 versus the current price of €68.76, implying 25.1% upside. The balance sheet has been restored since the SABMiller deal closed in October 2016, when leverage peaked at 6.4x Net Debt/EBITDA; we expect ND/EBITDA to reach 2.5x in FY26E, approaching management's 2x optimal capital structure. Fundamentals remain strong and FCF is best-in-class: we forecast FY26 FCF of $12.8bn (+13% y/y), driven by 6.2% organic EBITDA growth, a rare FX tailwind and working capital/CapEx efficiencies, growing c.5% p.a. to c.$15.6bn by FY30E, with c.11% EPS CAGR in FY27-29E. The four capital allocation priorities are organic growth, deleveraging, return of capital and selective M&A;