Gerald Pascarelli, an analyst from Needham, maintained the Buy rating on Molson Coors (TAP – Research Report). The associated price target remains the same with $72.00.
Gerald Pascarelli has given his Buy rating due to a combination of factors that, despite recent challenges, suggest potential for future growth. Although Molson Coors reported declines in revenue, profit, and EPS, with a significant drop in volume across various regions, Pascarelli sees underlying strengths in the company’s financial management. The company’s decision to maintain its underlying free cash flow at $1.3 billion, despite lowering capital expenditure expectations, indicates a strategic approach to navigating current market conditions.
Moreover, while the guidance revision was disappointing, it was not entirely unexpected given the previously communicated volume headwinds and the company’s recent market share gains. Pascarelli likely believes that these factors, along with the company’s ability to manage costs and maintain cash flow, position Molson Coors for recovery and growth in the longer term. This strategic outlook and financial resilience underpin his Buy rating, suggesting confidence in the company’s ability to overcome short-term setbacks.
In another report released on May 5, Evercore ISI also maintained a Buy rating on the stock with a $64.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TAP in relation to earlier this year.