Molson-Coors Looking Like a Heady Beer Stock: Analyst
Investors may want to raise their glasses to beer stocks the Fourth of July.
Kaumil Gajrawala, an analyst at UBS, told CNBC’s “Squawk on the Street” that the holiday can generate about 5% of annual beer sales.
“If you want to get a read on the third quarter (sales), look at how the weather has been in different parts of the country,” Gajrawala said.
He likes Molson-Coors because the company has proven it can expand premium beer sales despite concern about consumers shifting to imported and craft beers.
He said Anheuser-Busch is making the right moves by expanding into wine, spirits and soft drinks.
“(The company) needs to diversify,” Gajrawala said. “However, they’ll go through some growing pains to do it. So over the next 12 months, I prefer Molson-Coors.”