AT&T, Texas Instruments and Enphase Energy fall premarket; Hasbro rises
On Thursday, Molson Coors (NYSE:TAP) received a reaffirmed Buy rating and a steady price target of $70.00 from BofA Securities. The endorsement comes after the company reported fourth-quarter 2024 earnings that surpassed expectations. Molson Coors announced an adjusted EPS of $1.30, which was higher than both BofA’s prediction of $1.13 and the Visible Alpha consensus of $1.14. The earnings beat was attributed to lower-than-anticipated interest expenses, other income, and a reduced tax rate. According to InvestingPro data, the company maintains a healthy P/E ratio of 12.16 and has demonstrated strong profitability with a trailing twelve-month EPS of $4.42.
The company’s organic sales in the Americas experienced a year-over-year decline of 2.2%, which was better than BofA’s forecasted 0.9% drop but not as steep as the Visible Alpha consensus of a 4.5% decrease. Shipments fell by 5.9%, a smaller reduction than the anticipated 8.6% consensus. However, a positive price and product mix contributed a 3.7% increase, slightly below BofA’s 4.0% estimate and the consensus of 4.5%. InvestingPro analysis shows the company maintains a strong financial health score of "GOOD" and boasts an impressive free cash flow yield of 10%, suggesting robust operational efficiency despite market challenges.
Molson Coors reported that consumption reached 14.2 million hectoliters (HL), outpacing shipments of 13.9 million HL in the quarter. The company undershipped consumption by 1.0 million HL during the second half of 2024, which helped to balance the 1.1 million HL overshipment in the first half of the year. Additionally, the termination of the Pabst contract brewing agreement was noted as a 400,000 HL headwind during the quarter.
BofA Securities maintains its Buy rating and $70 price objective, which is based on a future price-to-earnings multiple of 10.9x on the firm’s FY26 EPS estimate. This valuation is slightly below Molson Coors’ 5-year average forward price-to-earnings multiple. BofA Securities anticipates that improved performance in the beer category and favorable comparisons to the previous year will bolster sales in 2025, despite expectations for the company to lose volume share in the same year. InvestingPro analysis indicates the stock is currently undervalued compared to its Fair Value, with additional ProTips revealing the company has maintained dividend payments for 50 consecutive years and demonstrates strong cash flow generation. For comprehensive insights into Molson Coors’ valuation and future prospects, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Molson Coors has been making headlines with a robust fourth-quarter performance that surpassed expectations, particularly in the Americas region. Goldman Sachs has maintained its Buy rating on the company, with a steady price target of $75.00. On the other hand, JPMorgan and Citi have both reaffirmed their Neutral stance on Molson Coors, with a price target of $58.00 and $57.00 respectively. Barclays (LON:BARC), however, reiterated its Underweight rating with a consistent price target of $48.00.
These ratings follow Molson Coors’ earnings per share (EPS) for the quarter reported at $1.30, outpacing consensus estimates. Notably, the company’s strong quarter was marked by better-than-anticipated volume performance in the Americas, which helped to offset weaker results in other regions.
Looking ahead, Molson Coors’ management has set forth an optimistic full-year 2025 guidance, suggesting improved operating leverage. This forward-looking stance indicates that consensus estimates for FY25 will likely need to be revised upward. These recent developments provide valuable insights for investors interested in Molson Coors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.