People may be drinking more these days. Or at least they’re buying stocks tied to drinking. Two of the top recent performers in the consumer staple category are Anheuser Busch (BUD) and Brown-Forman (BF/B). BUD is nearing a test of two previous peaks formed around 54. And it’s rising on strong volume. Brown-Forman is also showing rising price action and better relative strength.
As we look at the chart on Bud that take a look at the chart, and what caused the big jump today. Deutsche Bank raises their price target on Anheuser-Busch (NYSE: BUD) from $55 to $56 and maintains their Buy rating. The price target increase comes on the heels of BUD’s successful launch of Bud Light Lime.
Shares of Anheuser-Busch (NYSE: BUD) are moving higher this morning on reports from FT.com’s Alphaville that brewing giant InBev is preparing a $46 billion bid for its US rival. This would equal about $65 per BUD share, according to the report.
The report said if Anheuser-Busch rejects the approach, InBev is considering taking the offer directly to BUD shareholders.
OI is also an interesting way to play the sector as they make the bottles.