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Investing.com - TD Cowen reduced its price target on Molson Coors (NYSE:TAP) to $47.00 from $48.00 on Thursday, while maintaining its Hold rating on the brewing company’s stock. Currently trading at $49.50, the stock is near its 52-week low of $46.94. According to InvestingPro analysis, Molson Coors appears undervalued based on its Fair Value metrics.
The firm cited expectations that the beer category will remain subdued due to both cyclical and structural factors, leading to continued market share challenges for Molson Coors. Despite these challenges, the company maintains a solid 3.74% dividend yield and has consistently paid dividends for 51 consecutive years.
TD Cowen analyst Robert Moskow specifically noted concerns about competitive pressures, pointing to Anheuser-Busch InBev (EBR:ABI)’s investment spending and Constellation Brands (NYSE:STZ)’ distribution growth ambitions as factors likely to erode Molson Coors’ market position.
The research firm adjusted its fiscal year 2026 organic growth forecast for Molson Coors downward to -1.7%, reflecting the challenging industry environment.
TD Cowen also revised its FY26 earnings per share growth projection to flat, suggesting limited profit expansion for the brewing company over the medium term.
In other recent news, Molson Coors reported stronger-than-expected earnings for the second quarter of 2025. The company achieved earnings per share of $2.05, surpassing forecasts of $1.85, and revenue reached $3.2 billion, exceeding the projected $3.1 billion. Despite these positive results, Molson Coors lowered its guidance for the remainder of the year, raising concerns among investors. Roth/MKM responded by lowering its price target for the company to $67 while maintaining a Buy rating. UBS also adjusted its price target to $52, keeping a Neutral rating. Both firms acknowledged the company’s strong earnings performance, driven by organic sales growth and improved margin performance. These developments highlight the mixed sentiment among analysts and investors regarding Molson Coors’ future outlook.
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