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Investing.com - Jefferies raised its price target on Molson Coors (NYSE:TAP) to $51.00 from $50.00 on Tuesday, while maintaining a Hold rating on the beverage company’s stock. The stock currently trades at $46.03, near its 52-week low, with a modest P/E ratio of 9.93x. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.
The firm cited Molson Coors’ leadership transition, organizational restructuring, and accelerated innovation as indicators that the company has entered a new phase in its development. The company’s strong financial foundation is evidenced by its impressive 51-year streak of maintaining dividend payments, currently offering a 4.08% yield.
Jefferies highlighted the importance of Fever-Tree in Molson Coors’ strategy, noting the premium mixer brand’s positioning in a drink mixer total addressable market estimated to be seven times larger than the UK market.
The research firm projects Fever-Tree’s US growth to range between low to mid-20% over the next three years, contributing significantly to Molson Coors’ overall performance.
Based on this improved growth outlook, Jefferies has increased both its top-line and bottom-line estimates for Molson Coors .
In other recent news, Fevertree Drinks has announced steady progress in the first half of 2025, confirming that it remains on track to meet its full-year expectations. The company reported a 2% revenue growth at constant currency for the six months ending June 30, with adjusted EBITDA rising 1% to £18.4 million and margins increasing to 10.7%. Additionally, Jefferies upgraded Fevertree Drinks from Hold to Buy, citing a new partnership with Molson Coors, which is expected to enhance the company’s scale in the U.S. market.
Meanwhile, Molson Coors is undergoing a leadership change, with Rahul Goyal set to become the new CEO effective October 1, 2025. Goyal will replace Gavin Hattersley, who will continue in an advisory role until the end of 2025. Piper Sandler has lowered its price target for Molson Coors to $52.00, maintaining a Neutral rating due to ongoing headwinds and a lack of clear near-term catalysts for improvement.
Jefferies also reported that the U.S. alcohol inventory-to-sales ratio remained stable in July, with a slight improvement in sales from wholesalers to retailers. Despite the improvement, inventories increased by 4.2% year-over-year, potentially influenced by tariff volatility. These developments reflect the dynamic changes within both Fevertree Drinks and Molson Coors, as they navigate various market challenges and opportunities.
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