Ambev S.A. (NYSE:ABEV) is one of the best low priced stocks to buy right now. Ambev S.A. (NYSE:ABEV) was downgraded to Sell from Neutral by UBS on April 16, with the firm setting a $2.65 price target on the stock. It told investors in a research note that it believes the stock’s risk/reward at current levels to be “skewed to the downside”, following the 32% rally over the past six months. The firm added that there is a “growing disconnect” between Ambev S.A.’s (NYSE:ABEV) earnings growth profile, Brazil’s cost of capital, and valuation.
Why Ambev SA (ABEV) is Surging in 2025
For additional reference, in its fiscal Q4 and full year 2025 results, Ambev S.A. (NYSE:ABEV) reported that top-line performance was driven by net revenue per hectoliter growth of 8.7% in the quarter. Net revenue for fiscal year 2025 rose by 4.0%, with NR/hl growth of 7.5%, driven primarily by factors such as favorable mix, premiumization, and revenue management initiatives. Management also stated that net revenue rose in most of the company’s operations, including LAS2 (+15.6%), Brazil NAB (+4.9%), and Canada (+0.8%), while remaining flat in Brazil Beer (0.0%), and declining slightly in CAC (-0.1%).
Ambev S.A. (NYSE:ABEV) produces, distributes, and sells beverages. Its offerings include carbonated soft drinks, beer, and other non-alcoholic and non-carbonated products. The company’s operations are divided into the following geographical segments: Brazil, Central America and the Caribbean (CAC), and Canada.
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