Anheuser-Busch (BUD) - Get Anheuser-Busch InBev SA/NV Report shares were down more than 2.1% Thursday to $80.41 after analysts at RBC lowered the company's rating to sector perform from its highest rating due to concerns about the company's prospects for margin growth.
"With little prospect of margin growth and valuation approaching our price target we downgrade to Sector Perform," Jones said. "We remove AB InBev from the European Best Ideas list."
AB InBev's stock has jumped more than 20% since the start of the year after closing 2018 down more than 40%.
"AB InBev's margins were so high so early in its career as a European quoted company," RBC analyst James Edwardes Jones said in a note. "We also refer to the rapidity of its rehabilitation from being an over-leveraged pariah."
The firm has an $84.81 price target on Anheuser-Busch, the maker of Budweiser.
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