Cautious Optimism for Molson Coors: Buy Rating Despite Q1 Challenges

In a report released today, Bryan Spillane from Bank of America Securities reiterated a Buy rating on Molson Coors (TAP – Research Report), with a price target of $65.00.

Bryan Spillane has given his Buy rating due to a combination of factors that highlight both challenges and potential opportunities for Molson Coors. Despite a weaker-than-expected first quarter in 2025, where the company reported adjusted earnings per share below forecasts, Spillane sees potential for stabilization and growth. The company faced headwinds from lower sales, reduced gross margins, and increased marketing, general, and administrative expenses, but these were partly due to seasonal factors and broader industry trends.
Spillane’s optimism is partly based on the expectation that Molson Coors will stabilize its volume comparisons in the second quarter, particularly as it moves past the impact of the Bud Light controversy. The resilience of key brands such as Miller Lite and Coors Light, coupled with a potential normalization in US beer consumption, positions the company for sequential improvements in sales and earnings growth. While there are risks if these improvements do not materialize, Spillane maintains a Buy rating, albeit with a lowered price objective, reflecting a cautious yet optimistic outlook for the company’s future performance.

In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $60.00 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.