Analyst Javier Gonzalez Lastra from Berenberg Bank maintained a Buy rating on Molson Coors (TAP – Research Report) and keeping the price target at $86.90.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Javier Gonzalez Lastra has given his Buy rating due to a combination of factors despite the recent underperformance of Molson Coors. Although the company reported weaker-than-expected Q1 results, this is partly attributed to the seasonally weak trading period. The company’s management has adjusted its full-year guidance, reflecting short-term macroeconomic uncertainties, but they have maintained their cash-flow guidance, suggesting confidence in future recovery.
Lastra’s recommendation is also based on the potential for shareholder returns through dividends and share buybacks, supported by the company’s cash flow. Additionally, Molson Coors’ valuation appears attractive, trading at a lower P/E and EV/EBIT compared to the sector average, which may already factor in the lack of anticipated growth. This presents an opportunity for investors if the company can capitalize on potential improvements in US shipments during the key summer months.
In another report released on May 9, Bank of America Securities also reiterated a Buy rating on the stock with a $65.00 price target.