Molson Coors Price Target Lowered to $53 by Barclays

Barclays lowered the price target on Molson Coors to $53 from $57 and maintained an Equal Weight rating. The analyst cited subdued investor expectations into earnings season as a reason for the adjustment.

Barclays has recently lowered its price target for Molson Coors (NYSE:TAP) to $53 from $57, while maintaining an Equal Weight rating. The adjustment reflects subdued investor expectations into the company's upcoming earnings season [1].

Molson Coors has been facing significant headwinds, including volume pressures and contract brewing terminations. The company's stock has been trading near its 52-week low, with analysts expressing cautious optimism despite the challenges [1]. The latest price target adjustment comes as part of a broader trend of analyst downgrades and target reductions for Molson Coors, reflecting ongoing concerns about its topline performance and the broader beer industry [1].

Barclays' decision to lower the price target is aligned with other major financial institutions that have recently adjusted their views on Molson Coors. Citigroup, for instance, reduced its price target to $51, citing continued pressure on the company's top-line performance and ongoing softness in the beer category [1]. Despite these challenges, Molson Coors maintains a strong dividend profile, with a current yield of 3.8% [1].

The company's recent strategic partnership with Fever-Tree, which granted Molson Coors exclusive U.S. production and commercialization rights, is expected to partially offset the impact of contract brewing terminations. However, the overall outlook remains challenging, with analysts highlighting the need for improved operational performance and cost control [1].

The varied performance across the beverage industry highlights both opportunities and challenges for investors. While Molson Coors faces significant headwinds, other companies like Keurig Dr Pepper and Celsius Holdings are showing signs of improvement, with robust retail sales growth [1].

References:
[1] https://www.investing.com/news/analyst-ratings/citi-lowers-molson-coors-stock-price-target-to-51-on-volume-pressures-93CH-4136164