Molson Coors Pushes to New Highs Despite Everyone Drinking Wine

NEW YORK (TheStreet) -- If you're familiar with Coors Light, Killian's Irish Red and Blue Moon, you know Molson Coors Brewing Co.  (TAP). The product of the 2005 merger between Canada's Molson and Denver's Coors, the combined Molson Coors has been on a tear, reaching all-time highs through much of this year.

In addition to steadily rising revenue, Molson Coors has been bolstered by recent ratings upgrades from Bank of America Merrill Lynch, Zacks Investment Research and the ISI Group. Shares rose 0.9% to $73.13 on Thursday, extending its 12-month advance to 49%.

The beverage company's success is born of diversification and an improving global economy. While the Coors and Molson brands are the company's best known brands, the Blue Moon craft has given the beverage maker a comparatively new high-growth product, wrote BTIG-Equity Research, in a June 12 investor note by April Scee and Theo Brito.

Molson Coors has also built a formidable business in faster-growing economies, most notably, China, India, Ukraine and Central America. The 2012 acquisition of Starbev LP additionally positions the company to expand its reach in Central and Eastern Europe.

"TAP is poised to benefit from mainstream beer recovery, healthy net pricing/mix realization and am improved cost discipline," 
Goldman Sachs analysts Judy Hong, Ivan Holman and Jacob Feinstein in yet another position investor report, this one published on June 11. Goldman reiterated its 'buy' rating and increased its 12-month price target to $79.

Analysts Robert Ottenstein and Eric Serotta of ISI Group point out that Molson Coors has benefited from the success in the United Kingdom of lite-beers, traditionally not a big seller. "We can expect even more event-driven investors to purchase TAP as the calendar moves closer to 2015," wrote the ISI analysts. 

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