JP Morgan Reiterates Neutral, PT of $45 on Molson Coors

JP Morgan maintains its Neutral rating and $45 target price on Molson Coors Brewing Company TAP as the company offers assessment and outlook on investor day. JPM says, “Management's medium term outlook does not assume any improvement from current trends. The JV expects volume to continue to be down 1-2% as long as there is not an improvement in unemployment levels within the key beer drinkers (aged 21-35). In this environment, they would expect to continue to see pricing in the +2-3% range and would expect ebitda margins to grow 25-50 bp annually (slightly below previous guidance given their continued weak volume expectations). While the continued pricing expectations are a positive, a third year of negative industry volume is certainly not attractive.” TAP closed at $48.84 per share on Monday.