Analyst Hikes Molson Coors Price Target

NEW YORK (AP) — An appealing stock price and the likelihood of earnings growth prompted an analyst to boost his price target for Molson Coors Brewing Co. on Wednesday.

Mark Swartzberg of Stifel Nicolaus & Co. said in a client note that MillerCoors, the brewing company's joint venture with SABMiller, "is producing strong double-digit EBITA (earnings before interest, taxes and amortization) growth."

The analyst said MillerCoors also looks to benefit from new cost cutting measures set to be announced later this year. Swartzberg expects MillerCoors to realize savings of $500 million.

Molson Coors, which makes brands such as British top-seller Carling, Miller Lite and Coors Light, named Dave Perkins president and Chief Executive of Molson Canada on Tuesday.

Swartzberg increased the Denver-based company's price target to $54 from $48.

The analyst also boosted his 2009 earnings-per-share estimate to $3.37 from $3.28 and lifted his 2010 forecast to $3.93 from $3.70. He cited updated currency exchange rates and lower estimates for commodity cost increases.

Molson Coors stock fell 9 cents to $46.25 in morning trading.