Shares of Anheuser-Busch (BUD) and Target (TGT) both dropped over -15% during the past month. Hedgeye analysts Daniel Biolsi and Brian McGough agree that the Bud Light boycott will have a much larger, long-term impact than the Target boycott.
“You could argue Bud Light fired its customer, whereas with Target, did it fire its customer or did it just piss its customer off for a couple weeks?” McGough asks in this clip from The Call @ Hedgeye. “They’re going to change out their pride merchandise over the course of a three-week time period here, and the customer will come back.”
Target “has a lot of bad news in it,” but McGough says he wouldn’t press the short following Old Wall downgrades. Given consumer demographics and other factors, the popular retailer will likely recover much quicker than Bud Light.
“For Bud Light, it’s different because it’s a permanent impairment,” Biolsi explains. “The product doesn’t change, right? That’s part of the problem, it’s a brand.”
Watch the full clip above.
