Molson Coors (TAP) PT Lowered to $40 at UBS Ahead of Q2 Report

UBS analyst Peter Grom lowered the price target on Molson Coors (NYSE: TAP) to $40.00 (from $46.00) while maintaining a Neutral rating.

The analyst commented, "TAP is scheduled to report 2Q earnings next Thursday (8/6) before the open. For the quarter, we are forecasting EPS of $1.50 which is $0.03 below Visible Alpha consensus. Since reporting 1Q EPS, the stock has underperformed the XLP and U.S. Beverage peers by -280bps and -270bps, respectively, and our conversations with investors would suggest that sentiment continues to lean negative. This is largely predicated on the view that 2Q will be the weakest quarter of the year from a fundamental standpoint, as tracked trends continue to deteriorate, cost pressures remain volatile, and the category backdrop remains increasingly unfavorable. Looking ahead, we expect the key investor debate to remain unchanged, with many questioning the achievability of FY26 guidance, particularly as cost pressures mount and market share losses persist. Although valuation remains compelling, we believe that more visibility on the top/bottom-line trajectory will be needed before becoming constructive."

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