What Happened?
Shares of beer company Molson Coors (NYSE:TAP) fell 3% in the morning session after concerns grew over the impact of new weight-loss drugs on alcohol sales, a factor cited by Piper Sandler when the firm lowered its price target on the stock. The investment firm cut its price target to $50 from $52, citing recent developments in GLP-1 drugs and other regulatory factors. These types of drugs, often used for weight loss, were believed to be negatively impacting alcohol consumption. This view was previously shared by Molson Coors' former CEO, Gavin Hattersley, who had noted the adverse effects of these drugs. The adjustment from the analyst firm highlighted the increasing caution regarding the potential for these drugs to dampen demand for alcoholic products.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Molson Coors? Access our full analysis report here.
What Is The Market Telling Us
Molson Coors’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 20 hours ago when the stock gained 3.6% on the news that the company announced its Madrí Excepcional brand surpassed £1 billion in annual sales as the brand celebrated its fifth anniversary. The European-style lager, launched in October 2020 in partnership with La Sagra brewery, has become one of the most successful beer introductions in the last decade and is now the UK's second-largest world lager brand. The significant sales milestone was driven by strong performance across different channels. In pubs and restaurants, annual sales exceeded £880 million, marking a 5.4% year-on-year growth in 2025. In retail stores, sales approached £140 million, representing a 12% year-on-year growth. The brand's success also included the rollout of an alcohol-free version, Madrí Excepcional 0.0%, which generated over £1.5 million in revenue in its first six months.
Molson Coors is down 20.7% since the beginning of the year, and at $45.34 per share, it is trading 27.9% below its 52-week high of $62.91 from March 2025. Investors who bought $1,000 worth of Molson Coors’s shares 5 years ago would now be looking at an investment worth $943.09.
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