UPDATE: JPMorgan Downgrades Molson Coors (TAP) to Underweight
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JPMorgan analyst Andrea Teixeira downgraded Molson Coors (NYSE: TAP) from Neutral to Underweight with a price target of $43.00 (from $45.00).
The analyst comments "We are downgrading Molson Coors (TAP) to Underweight from our prior Neutral rating. While we acknowledge that TAP should be a reopening beneficiary, the timeline to recovery appears highly uncertain and in the near term earnings will likely be pressured by operational headwinds in the US from recent adverse weather in Texas, prolonged lockdowns in Europe, a cybersecurity incident that disrupted order fulfillment, as well as increased reinvestments in marketing to drive growth in the above-premium segment. While we do not want to take away from management’s focus on higher-growth categories with important JVs in particular with KO to distribute Topo Chico Hard Seltzer in the US, innovation in its Vizzy hard seltzer new variety pack, strength in Blue Moon Lightsky, as well as Zoa leading to good results in tracked channels, premium liquids represent only ~10% of sales in the US. As such, given the headwinds in its core business, we see risk to the company's ability to meet its FY2020 financial guidance of mid-single-digits top-line growth and flat EBITDA growth."
Shares of Molson Coors closed at $49.15 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
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