Needham analyst Gerald Pascarelli reiterated a Buy rating on Molson Coors (TAP – Research Report) today and set a price target of $72.00.
Gerald Pascarelli has given his Buy rating due to a combination of factors surrounding Molson Coors Beverage Company’s current and future positioning. The announcement of CEO Gavin Hattersley’s retirement, while unexpected, aligns with the typical tenure for CEOs at the company, suggesting a standard succession process. Hattersley’s leadership has been marked by navigating significant challenges, including the COVID-19 pandemic and market shifts due to external controversies, positioning the company on a path to achieve its long-term goals.
With ample time to find a successor, the transition is expected to be smooth, ensuring continuity and strategic alignment. The company’s focus on strengthening its core, premiumizing its portfolio, and expanding beyond beer is seen as a positive trajectory. Despite challenges in the industry, the potential for new leadership to bring fresh perspectives is viewed as beneficial. Pascarelli maintains confidence in the company’s ability to meet its targets, reaffirming the Buy rating with a price target of $72.
Pascarelli covers the Consumer Defensive sector, focusing on stocks such as Constellation Brands, Celsius Holdings, and Molson Coors. According to TipRanks, Pascarelli has an average return of -1.6% and a 46.38% success rate on recommended stocks.
In another report released on April 7, Bank of America Securities also maintained a Buy rating on the stock with a $78.00 price target.