TAP’s Upside Driven By Lower-Than-Expected Tax Rate

Analysts at JP Morgan reiterate their "overweight" rating on Molson Coors Brewing Company TAP, while raising their estimates for the company. The target price for TAP is set to $48. JP Morgan mentions, “TAP released Q210 comparable EPS of $1.25 vs. our $1.18 estimate and the $1.20 Bloomberg consensus. Upside was mainly driven by better results at MillerCoors and a lower than expected tax rate. Total revenue was 100 bp better than forecast driven by better volume results in Canada and the UK. Management continues to see a slowly improving environment in Canada and in the US as it pertains to C-store and the onpremise channel and the pricing environment should remain rational.” JP Morgan has raised its EPS estimates for 2010 and 2011 from $3.25 to $3.45 and from $3.61 to $3.68, respectively. More Analyst Ratings here