Deutsche Bank Reinstates MillerCoors (TAP) with a Buy
More News related to TAP
- Molson Coors Brewing Company to Webcast Financial Presentation at Lehman Brothers Back-To-School Consumer Conference
- BMO Cuts Price Target on Molson Coors (TAP) to $54
- Molson Coors (TAP) Reports Q2 EPS of $0.93
- Molson Coors Reports Second Quarter 2008 Financial Results
- Molson Coors Reports Second Quarter 2008 Financial Results
Deutsche Bank reinstates MillerCoors (NYSE: TAP) with a Buy rating and a $65 price target.
The firm said, "MillerCoors presents integration profit opportunities at every level such that we think besting initial $500 million synergy target is likely. Short-term, integration
results may be uneven, but higher input pressures makes such a transformative deal very timely. We expect more consistent portfolio performance when combined with Canada/UK operations will support higher valuation."
The firm highlights that the company "has a material brand overlap issue with no obvious solution (Coors Light and Miller Lite), but a stronger collective portfolio." However, merging cultures and management will be more difficult while other major hurdles will include pricing strategy and supply chain integration. Deutsche Bank respects Leo Kiely's capabilities and track record, but overall the "road could be bumpy" because merging "competitors in the same geography is not the same as latching together US and Canadian businesses."
MillerCoors engages in the production and sale of beer and other beverages.
Related Categories
New CoverageStocks Mentioned
+1.15Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
