Market Overview

Molson Coors On Track To Outperform Beer Peers, Susquehanna Says

Share:
Molson Coors On Track To Outperform Beer Peers, Susquehanna Says

Although shares of Molson Coors Brewing Co (NYSE: TAP) have lost 8 percent in the last three months, the stock has outperformed other beer stocks. The company’s shares are now trading below tobacco stocks and its valuation appears attractive, according to Susquehanna.

The Analyst

Analyst Pablo Zuanic maintains a Positive rating on Molson Coors and reduced the price target from $79 to $71.

The Thesis

Molson Coors’ U.S. volumes continue to lag the industry and Anheuser Busch Inbev NV (NYSE: BUD), Zuanic said in a Monday note.

Coors Light gaining share from Bud Light will not be enough, as the light segment is continuing to lose share to the large number of emerging alternatives, the analyst said.

Despite these factors, Molson Coors has more aggressive profit margin expansion, EPS and FCF targets for 2019, which could help its stock narrow the valuation gap, in Susquehanna's view.

Molson Coors' outperformance versus other brewery stocks seems like “a sign of sentiment starting to turn,” Zuanic said.

While volume is unlikely to be a catalyst, commentary from Molson on cost savings and synergies could lend upside, he said.

Price Action

Molson Coors shares were down 0.23 percent at $59.57 at the time of publication Monday.

Related Links:

Anheuser Busch Analyst Says Share Price Has Gone Too Flat, M&A Unlikely

Molson Coors Expects To Launch Cannabis Beverage In 2019

Latest Ratings for TAP

DateFirmActionFromTo
Nov 2019DowngradesOutperformMarket Perform
Nov 2019DowngradesOverweightEqual-Weight
Oct 2019DowngradesNeutralSell

View More Analyst Ratings for TAP
View the Latest Analyst Ratings

Posted-In: Pablo Zuanic SusquehannaAnalyst Color Price Target Analyst Ratings Best of Benzinga

 

Related Articles (TAP + BUD)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
KHCUBSMaintains31.0
RPAYCantor FitzgeraldMaintains18.0
CMSCredit SuisseDowngrades
PBCTStephens & Co.Maintains15.5
TTECCowen & Co.Initiates Coverage On50.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com