AmBev Keeps the Thirst Quenched

We are maintaining our Buy recommendation on Companhia de Bebidas das Americas, better known as AmBev (ABV). The company posted good results for the 4th quarter of 2008 with excellent results in Argentina as well as soft drinks and non-alcoholic, non-carbonated (NANC) beverages in Brazil.

InBev's acquisition of Anheuser-Busch was positive for the company as it creates huge synergies. Despite the difficult economic environment throughout the world due to the global credit crunch, the company, which is focusing on low cost, daily use products, is not tied directly to the international economic cycle.

Also, a more relaxed monetary policy in Brazil is very positive for the company. Our Buy recommendation accompanies a 6-month target price of $48 per share.

Read the full analyst report on ABV