Anheuser-Busch InBev (BUD) dominates a category that is seeing solid growth in emerging markets and is also benefiting from a currency tailwind, RBC Capital Markets said in a note Thursday.

The investment firm noted that "developing market participation has risen as the US and China have declined, enabling modest, but positive, volume growth."

Additionally, the company's business-to-business e-commerce platform BEES is providing a "useful, though not transformational, fillip," the note said.

The investment firm added that "reasons not to own AB InBev look threadbare" and that the company's shares are "meaningfully undervalued."

The investment firm said that while Anheuser-Busch InBev is the "best performing stock in our coverage universe over the last year, the shares only trade in line with Heineken and Carlsberg and on a big discount" to category leaders like Nestle and Procter & Gamble (PG).

RBC reiterated its outperform rating on Anheuser-Busch InBev.

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