Molson Coors stock price target lowered to $67 at Roth/MKM on guidance concerns

Published 07/08/2025, 14:40
Molson Coors stock price target lowered to $67 at Roth/MKM on guidance concerns

Investing.com - Roth/MKM reduced its price target on Molson Coors (NYSE:TAP) to $67.00 from $71.00 on Thursday, while maintaining a Buy rating on the brewing company’s stock. Currently trading at a P/E ratio of 9.7, the stock appears undervalued according to InvestingPro analysis, which gives the company a "GOOD" overall financial health rating.

The price target adjustment follows Molson Coors’ second-quarter earnings report released Tuesday, which showed the company beat expectations on both net sales and earnings. The company maintains a strong dividend track record, having maintained payments for 51 consecutive years, with a current yield of 3.7%.

Roth/MKM noted significant improvement in Americas Brand Volumes, which declined 4% year-over-year in the second quarter, a substantial improvement from the 7.4% drop recorded in the first quarter.

The firm also highlighted positive developments in underlying cost of goods sold per hectoliter, which rose 4.9% year-over-year, better than the previous quarter’s 6.1% increase.

Despite these improvements, Roth/MKM cited currency movements and aluminum inflation related to the Midwest Premium as factors weighing on the company’s outlook, prompting the downward revision to the price target while maintaining its positive stance on the stock.

In other recent news, Molson Coors reported second-quarter earnings per share of $2.05, surpassing both UBS estimates of $1.82 and the Visible Alpha consensus of $1.86. The company’s revenue also exceeded expectations, reaching $3.2 billion compared to the projected $3.1 billion. Despite these strong results, Molson Coors lowered its guidance for the remainder of 2025, which may have contributed to investor concerns. In related developments, UBS adjusted its price target for Molson Coors to $52.00 from $53.00, while maintaining a Neutral rating on the stock. These updates reflect ongoing evaluations by analysts and the company’s strategic adjustments.

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