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Investing.com - Piper Sandler reduced its price target on Molson Coors (NYSE:TAP) to $52.00 from $53.00 on Tuesday, while maintaining a Neutral rating on the brewing company’s stock. The stock currently trades near its 52-week low of $43.80, though InvestingPro analysis suggests the company is undervalued at current levels.
The firm cited persistent headwinds and a lack of clear near-term catalysts for improvement, apart from a potential strengthening in U.S. consumer spending, which remains elusive. Piper Sandler’s target represents a price-to-earnings multiple of approximately 9.0x, which stands above the company’s five-year historical average of 7.6x and its current multiple of 8.3x. Despite market challenges, the company maintains a strong 4.11% dividend yield and has sustained dividend payments for 51 consecutive years.
The research firm noted continued pressure on top-line momentum in both the U.S. and EMEA markets, which it expects to persist in the near term. Piper Sandler lowered its Americas third-quarter 2025 organic sales decline estimate by approximately one percentage point to better reflect current retail momentum. For deeper insights into Molson Coors’ valuation and financial health, access the comprehensive Pro Research Report available on InvestingPro.
While on-premise consumption trends may be showing improvement, the firm acknowledged limited visibility in this segment. Underlying volumes for Molson Coors likely remain under pressure at least into 2026, according to the analysis.
Piper Sandler also adjusted its earnings per share estimates, lowering its 2025 EPS forecast from $5.45 to $5.43 and its 2026 EPS projection from $5.90 to $5.75, contributing to the reduced price target.
In other recent news, Molson Coors Beverage Company announced that Rahul Goyal will take over as president and chief executive officer starting October 1, 2025. Goyal, who has been with the company for 24 years, will also join the Board of Directors, while the current CEO, Gavin Hattersley, will continue in an advisory role until the end of 2025 to ensure a smooth transition. Meanwhile, Jefferies provided an analysis indicating that the U.S. alcohol inventory-to-sales ratio remained stable at 1.69x in July, with a slight year-over-year sales decline of 0.6% from wholesalers to retailers. This was an improvement over previous months, although inventories increased by 4.2% compared to the previous year, possibly due to tariff-related trade loading.
Additionally, Fevertree Drinks PLC reported that it remains on track to meet its full-year targets, despite facing challenges in the U.S. market. The company achieved a 2% revenue growth for the first half of 2025 and saw a 1% increase in adjusted EBITDA, with margins improving to 10.7%. These developments highlight the ongoing efforts and strategic changes within the beverage industry.
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