Susquehanna Worried About Molson Coors' Investor Seminar Tomorrow; Still Likes Stock

In a report published Tuesday, Susquehanna analyst Pablo Zuanic maintained a Positive rating and $91 price target on

, ahead of the company's Investor Day on Wednesday. "While we do not expect major announcements, we worry management may talk consensus numbers down (we are 6-8 percent below adjusted EPS for FY15-16), as FX pressures, loss of contracts, and likely little margin improvement in the US JV are not well reflected in the consensus numbers," Zuanic stated. At the same time, the analyst believes that the stock valuation is attractive, with the company trading at a discount to its peers, while stating that it is unlikely to take much in terms of "organic" announcements to narrow the discount. There could be upside in the near term if Molson Coors buys the 58 percent of MillerCoors that it does not own if

(ADR)

acquires SABMiller plc. SABMiller is Molson Coors' JV partner for MillerCoors. "In most plausible scenarios (assuming the Molson and Coors families are financially rationale) regarding how TAP could indirectly benefit from BUD buying SABMiller we see 20-40% upside for TAP shares (without factoring the organic benefits that could follow)," the Susquehanna report stated.