Intel stock spikes after report of possible US government stake
Investing.com - Keurig Dr Pepper (NASDAQ:KDP) and Celsius Holdings (NASDAQ:CELH) are well-positioned heading into second-quarter earnings, according to Piper Sandler’s latest beverages sector preview. The beverage sector has shown resilience despite market volatility, with companies like Boston Beer Company (NYSE:SAM) currently appearing undervalued according to InvestingPro analysis.
KDP shows strong top-line momentum in its U.S. refreshment beverages segment, with Piper Sandler noting likely upside to their $125 million Ghost brand estimate for Q2 2025. The firm points to U.S. measured retail sales growth of 4.4% quarter-to-date versus their 4.5% organic growth estimate, while U.S. coffee retail sales grew 4.4% against a more conservative -3.5% estimate.
For CELH, Piper Sandler observes improving trends for the Celsius brand, which showed 1.5% retail sales growth in Q2 2025 to date and 6.7% growth in the latest four weeks. The firm notes Alani Nu continues to demonstrate strong performance with 103.7% growth quarter-to-date, though its precise contribution remains difficult to determine due to potential inventory fluctuations.
The outlook appears less favorable for Boston Beer Company (NYSE:SAM), with Piper Sandler highlighting accelerating retail sales declines of 4.2% in Q2 2025 to date versus 2.6% in Q1. The firm sees downside risk to estimates as Twisted Tea posted 3.5% retail sales declines and Truly hard seltzer fell 18.5% during the period. According to InvestingPro data, SAM maintains strong fundamentals with a healthy 39% gross profit margin and robust free cash flow yield. InvestingPro subscribers have access to 12 additional key insights about SAM’s financial health and growth prospects.
Coca-Cola (NYSE:KO) faces likely headwinds from foodservice channels, which represent approximately 50% of North American segment sales, as restaurant traffic declined 1-3% in the quarter to date. However, Piper Sandler notes KO’s fairlife brand continues to show strong momentum with 27.0% U.S. measured retail sales growth in Q2 2025 to date.
In other recent news, Molson Coors (NYSE:TAP) has experienced a series of adjustments to its stock price targets and analyst ratings due to various challenges in the beer industry. BofA Securities downgraded Molson Coors from Buy to Neutral, citing persistent declines in U.S. beer volumes and the company’s inability to stabilize its market share. The firm also reduced its price target to $50, aligning it with the U.S. packaged food industry dynamics. Piper Sandler lowered its price target for Molson Coors to $53, maintaining a Neutral rating, as the company faces slowing retail momentum and rising aluminum costs. The firm also adjusted its earnings per share estimates downward for 2025 and 2026.
UBS reduced its price target to $59 following Molson Coors’ first-quarter earnings report, which fell short of expectations due to weaker organic sales growth and softer margins. Citi also lowered its price target to $56, expressing skepticism about the company’s revised guidance for 2025. The company now anticipates a decline in local currency sales and pre-tax profit, contrary to its earlier projections. Evercore ISI adjusted its price target to $60, maintaining an Outperform rating despite disappointing first-quarter results and a revised outlook. These developments reflect the ongoing challenges Molson Coors faces in a competitive market environment.
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