Sarina Trangle
2 min read
In This Article:
-
Bank of America downgraded Molson Coors Beverage's stock to "neutral" and lowered its price target for company shares to $50.
-
The analysts are relatively bearish on the maker of Coors, Miller High Life and Blue Moon. Visible Alpha has the average analyst price target at $62.
-
Bank of America anticipates that the company will struggle as beer consumption continues to drop in the U.S.
Growth isn’t on tap at Coors, some analysts say.
Bank of America downgraded Molson Coors Beverage (TAP) stock from “buy” to “neutral” on Friday, citing a rocky period for the beer industry. The analysts lowered their price target for the maker of Coors, Miller High Life and Blue Moon to $50—the lowest target among analysts who cover the stock tracked by Visible Alpha. The average price target among analysts is about $62, per Visible Alpha.
"It will be difficult for [Coors] to achieve what we expected with the industry slump continuing,” the Bank's analysts wrote.
Molson Coors ticked higher Friday, recently trading for more than $47. They have fallen more than 17% so far this year.
Initially, Bank of America expected beer companies to move 1% less product, by volume, in 2025 than they did in 2024. Its research team now forecasts a 4% annual decline, with volume dropping below levels seen in the early 1990s.
Beer has been “ceding customers and attention,” the analysts said, while describing beers as the “sheep” in an analogy based on the food chain: They’re up against wolves—spirits moving in with premixed, ready-to-drink beverages—and parasites—energy drinks exploiting the beer distribution network, Bank of America said.
"The U.S. beer industry continues to decline below historic trends," the note said, adding that analysts now view Coors "more in line with US packaged food industry peers, where the industry growth dynamics are similar."
Read the original article on Investopedia
