JPMorgan cuts Molson Coors rating to Underweight and lowers price target to $37
JPMorgan downgraded Molson Coors Beverage (TAP) to Underweight from Neutral and reduced its price target to $37, down from $41. The downgrade follows the company’s third‑quarter 2026 results, which showed revenue of $2.93 billion, missing estimates, while underlying earnings per share of $1.46 slightly beat forecasts. JPMorgan cited softness in the U.S. beer category, competitive pressure in the U.K., and rising cost pressures as the main reasons for the bearish outlook.
Why it matters
The lower price target suggests further downside pressure on TAP shares, and the downgrade may prompt investors to reassess valuations. JPMorgan’s revised earnings‑per‑share estimates for 2027 and 2028 are 10.5% and 10% below consensus, respectively, indicating a more cautious earnings outlook.
Key facts
- 1JPMorgan changed Molson Coors’ rating to Underweight from Neutral and set a new price target of $37, down from $41. investing.com
- 2Molson Coors reported third‑quarter revenue of $2.93 billion, below the $2.94 billion estimate. investing.com
- 3Underlying earnings per share for the quarter were $1.46, marginally above the $1.45 forecast. investing.com
- 4JPMorgan highlighted weak U.S. beer demand, U.K. competition and rising commodity and logistics costs as drivers of the downgrade. investing.com
- 5The analyst noted that the company’s 2027 EPS estimate is $4.36, and the $37 target is based on an 8.6× forward P/E. investing.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.