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Stifel No Longer Craving Molson Coors, Downgrades To Hold

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Stifel No Longer Craving Molson Coors, Downgrades To Hold

Some drinkers think Molson Coors Brewing Co Class B (NYSE: TAP) is going flat, and they’re setting it aside for something more flavorful.

The Rating

Stifel Nicolaus analysts Mark Swartzberg, Christopher Sinnott and Ryan Robinson downgraded Molson Coors to Hold and cut their price target from $71 to $65.

The Thesis

Sales volume across the U.S. industry continues to deteriorate, and Stifel anticipates 1.5-percent annual contraction through 2030 as per capita alcohol consumption declines. These factors compound a demographic shift toward wine, spirits and higher-end beer.

“Managers are focused on improved trends across price points, but consumption patterns favor smaller, more premium brands,” the analysts wrote in a Thursday note.

Altogether, conditions render multiple expansion unlikely.

Stifel anticipates flat earnings before interest, taxes, depreciation and amortization with stock appreciation driven only by annual deleveraging.

Price Action

At time of publication, shares were set to open down about 1 percent at a rate of $59.54.

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Latest Ratings for TAP

DateFirmActionFromTo
Apr 2021Wolfe ResearchInitiates Coverage OnPeer Perform
Mar 2021JP MorganDowngradesNeutralUnderweight
Jan 2021Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for TAP
View the Latest Analyst Ratings

 

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Posted-In: Christopher Sinnott Mark Swartzberg Ryan Robinson Stifel NicolausAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
GIKColliers SecuritiesInitiates Coverage On14.0
SANWLake StreetInitiates Coverage On6.0
LILAMorgan StanleyDowngrades15.0
BEJP MorganUpgrades36.0
NEXACredit SuisseUpgrades11.0
View the Latest Analytics Ratings
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