Citi opened a 90-day upside catalyst watch on Neutral-rated Molson Coors Brewing (NYSE:TAP) on Wednesday, maintaining a $72 price target on the stock.
Analysts said the firm made the move given their expectation for continued upside in the stock on benefits from the Bud Light controversy, which has driven a 15.8% increase in sales growth for TAP in Nielsen data for the Beer, FMB, and Cider categories in the period from 4/2/23 through 6/3/23.
"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," wrote analysts.
Citi's second-quarter EPS estimate for TAP of $1.56 is well above the Street estimate at $1.37. Its full-year EPS estimate of $4.70 is also well above the Street estimate at $4.29.
TAP shares are up over 31% so far in 2023.