Analyzing the Analyst Reactions
As trading unfolds, the stock of Molson Coors Beverage Co, under the symbol TAP, has surged past the average analyst 12-month target price of $67.94, reaching $68.19 per share. When a stock surpasses the target set by an analyst, the next move is crucial. Will the analyst downgrade the stock on valuation concerns, or will they revise the target price upwards? The decision often hinges on fundamental business developments driving the stock price hike.
Diving into Analyst Targets
Within the Zacks coverage universe, 17 different analysts have contributed to the average target price for Molson Coors Beverage Co. This average, at $67.94, serves as a baseline. Some analysts have set lower targets, with one looking at $58.00, while others have set higher targets, reaching as high as $77.00. The standard deviation stands at $4.669.
Understanding the “Wisdom of Crowds”
The rationale behind examining the average TAP price target is to tap into a “wisdom of crowds” effort. It amalgamates the collective insights of multiple analysts rather than relying solely on one expert’s opinion. With TAP exceeding the average target price of $67.94, investors now have a significant indicator to re-evaluate the company. Is $67.94 just a pit stop on the way to a loftier target, or has the valuation stretched too thin, prompting thoughts of divesting some shares?
| Recent TAP Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 3 | 3 | 3 | 3 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 13 | 12 | 12 | 12 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 2.76 | 2.75 | 2.75 | 2.75 |
The average rating in the table above ranges from 1 to 5, with 1 signifying a Strong Buy and 5 indicating a Strong Sell. This report utilizes data from Zacks Investment Research via Quandl.com. Stay abreast of the latest Zacks research report on TAP — available for FREE.
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The opinions and perspectives expressed here belong to the author and do not necessarily mirror those of Nasdaq, Inc.
