2023-06-21 09:56:32 ET
Citi issued a 90-day positive catalyst watch on Molson Coors Beverage Company ( NYSE: TAP ) on Wednesday.
Analyst Filippo Falomi expects continued upside in Molson Coors ( TAP ) from the Bud Light controversy. The Bud Light debacle is noted to have driven a 15.8% increase in sales growth for TAP in Nielsen data for the Beer, FMB, Cider category in the period from April 2 thru June 3 vs. the 10.5% decline for Anheuser-Busch InBev ( BUD ) for the same period,
"While TAP’s stock is already up 28% since 4/3/23, we expect the impact of the controversy to last through the summer, including the July 4 holiday (which is the highest consumption holiday for beer), which should result in upside for sales and profitability, notably not yet reflected in TAP’s guidance."
Citi set its Q2 EPS estimate on Molson Coors ( TAP ) at $1.56 vs. $1.37 consensus and the firm's 2023 EPS estimate is $4.70 vs. $4.29.
Shares of TAP are up 35% year-to-date, while BUD is down 5.4%. Some Wall Street analysts think the share price decline in BUD already factors in Bud Light sales drop that will sustain and note the brand is a small part of the overall global business.
More on Molson Coors:
- Should Investors Consider The Beer Industry? Spotlight On Anheuser-Busch And Molson Coors
- More articles from Seeking Alpha analysts
- Growth metrics on Molson Coors
- Molson Coors earnings call transcript
- Seeking Alpha's Quant Rating for Molson Coors
For further details see:
Molson Coors is tapped by Citi to see more short-term gains