Latest news with #MidwestPremium
Yahoo
25-06-2025
- Business
- Yahoo
Piper Sandler Lowers PT on Molson Coors Beverage Company (TAP) to $53, Keeps a Neutral Rating
Molson Coors Beverage Company (NYSE:TAP) is one of the . On June 23, Piper Sandler lowered the firm's price target on Molson Coors Beverage Company (NYSE:TAP) to $53 from $58, keeping a Neutral rating on the shares. The analyst told investors in a research note that Molson Coors Beverage Company (NYSE:TAP) is exhibiting a continually slowing retail momentum. Q2-to-date US retail volumes dropped around 5%, with the company lapping elevated shipments from a year ago. A wide-angled shot of a brewery showing the large machinery used for producing malt beverages. In addition, aluminum prices are resulting in cost pressure behind increased Midwest Premium rates. The firm also noted that these circumstances are materializing at a time when the US beer category is experiencing pressure from societal shifts and macroeconomic factors. Molson Coors Beverage Company (NYSE:TAP) produces and sells beer. The company operates through the Americas, EMEA, and APAC geographical segments. While we acknowledge the potential of TAP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
25-06-2025
- Business
- Yahoo
Piper Sandler Lowers PT on Molson Coors Beverage Company (TAP) to $53, Keeps a Neutral Rating
Molson Coors Beverage Company (NYSE:TAP) is one of the . On June 23, Piper Sandler lowered the firm's price target on Molson Coors Beverage Company (NYSE:TAP) to $53 from $58, keeping a Neutral rating on the shares. The analyst told investors in a research note that Molson Coors Beverage Company (NYSE:TAP) is exhibiting a continually slowing retail momentum. Q2-to-date US retail volumes dropped around 5%, with the company lapping elevated shipments from a year ago. A wide-angled shot of a brewery showing the large machinery used for producing malt beverages. In addition, aluminum prices are resulting in cost pressure behind increased Midwest Premium rates. The firm also noted that these circumstances are materializing at a time when the US beer category is experiencing pressure from societal shifts and macroeconomic factors. Molson Coors Beverage Company (NYSE:TAP) produces and sells beer. The company operates through the Americas, EMEA, and APAC geographical segments. While we acknowledge the potential of TAP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
24-06-2025
- Business
- Yahoo
Molson Coors price target lowered to $53 from $58 at Piper Sandler
Piper Sandler lowered the firm's price target on Molson Coors (TAP) to $53 from $58 and keeps a Neutral rating on the shares. Molson Coors' retail momentum continues to slow, with Q2-to-date U.S. retail volumes down about 5% as the company laps elevated shipments from a year ago, the analyst tells investors in a research note. Aluminum prices are adding cost pressure behind elevated Midwest Premium rates, while U.S. beer category trends remain pressured from macro factors and societal shifts, the firm adds. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Disclaimer & DisclosureReport an Issue
Yahoo
18-06-2025
- Business
- Yahoo
Aluminum Market Reacts to Tariff-Induced Price Spikes
Via Metal Miner The Aluminum Monthly Metals Index (MMI) moved sideways as the global price of aluminum ticked modestly higher. Overall, the index rose 0.73% from May to June. Track other MetalMiner monthly indexes here, and compare how the overall industrial metal market is performing. The Midwest Premium found a peak in mid-June. Following successive tariff-induced spikes throughout the year's first half, the premium hit a new all-time high at $0.615/lb on June 9. This marked a staggering 161% rise since the start of 2025. However, in a relief to markets, the premium has since started to fall. Source: MetalMiner Insights While declines have proven modest thus far, the bias has shifted to the downside. The spot premium has fallen by over 3%, while the three-month futures contract suggests further declines. Futures now sit almost 14% lower than their respective peak as the reaction to tariffs appears to be over. Markets now seem to be pricing in the impact of considerably higher aluminum prices in the U.S., potentially out of concern over demand destruction in the months ahead. Source: MetalMiner Insights, Chart & Correlation Analysis Tool U.S. aluminum tariffs, which now sit at 50%, have significantly increased the price of aluminum in the United States. However, those costs are now weighing heavily on the demand outlook. While tariffs raise the floor for aluminum prices, they do not mean the market has reached a bottom just yet. Higher prices kill higher prices, and now, manufacturers appear to be buckling under the weight of the sharp material increases seen since the start of the year. Source: MetalMiner Insights Prior to the spikes, the market appeared largely sideways. Suppliers characterized demand as steady, albeit not as high as what would be considered healthy. Over recent years, the U.S. manufacturing sector has mostly trended in contraction, and the Institute for Supply Management's Manufacturing PMI continues to trend at weak levels. Throughout May, the PMI fell for the third consecutive month, dropping to 48.5. A reading below the 50 mark suggests an overall contraction in the U.S. manufacturing sector. Demand conditions have appeared to wane in the aftermath of tariff announcements. Now, markets are awaiting the outcome of trade negotiations, which could pull the premium much lower. So far, the UK has received a temporary exemption from the additional 25% increase on aluminum duties. Ongoing negotiations have hinted that this could result in a quota, like what occurred under the Biden administration. However, the recent trade deal with the UK did not address steel and aluminum, both of which could be adjusted pending a Commerce Department review. While the UK is not a significant aluminum supplier to the U.S., the recent deal indicates a path toward lower duties for other countries. At the beginning of June, the UAE agreed to start negotiations that would put aluminum imports in sharper focus. The UAE stood as the second-largest aluminum exporter to the U.S. in 2024, which would make a potential deal much more consequential to the aluminum market. The largest supplier, Canada, is also reportedly weeks away from an agreement. Exchange prices remain relatively stable, offering some relief to markets. While LME aluminum prices have risen since their early-April low, those gains appear relatively modest. Despite volatility witnessed across the base metal category throughout the year, LME prices stand 1.30% lower than where they closed 2024. While tariffs offered strong support to U.S. premiums, they have also suppressed global demand expectations for aluminum. Overall, the global market remains oversupplied. While it is close, China has yet to reach its 45 million ton cap on aluminum output, which continues to place a cap on exchange prices. Meanwhile, the U.S. awaits the opening of SDI's Aluminum Dynamics facility, which is due to come online this summer. This will provide an additional 650,000 metric tons of secondary aluminum to the market, offering further relief for the price of aluminum. By Nichole Bastin More Top Reads From this article on Sign in to access your portfolio
Yahoo
24-04-2025
- Business
- Yahoo
Alcoa Corporation (AA): A Bull Case Theory
We came across a bullish thesis on Alcoa Corporation (AA) on Substack by LongYield. In this article, we will summarize the bulls' thesis on AA. Alcoa Corporation (AA)'s share was trading at $23.30 as of April 21st. AA's trailing and forward P/E were 6.23 and 6.47 respectively according to Yahoo Finance. Pixabay/Public Domain Alcoa Corporation (AA) delivered a strong first quarter in 2025, showcasing notable operational improvements and a significant boost in profitability, fueled primarily by rising aluminum prices. While revenue dipped 3% sequentially to $3.4 billion due to softer alumina and aluminum shipments following a strong Q4, net income surged to $548 million, more than doubling the prior quarter's $202 million. Adjusted net income climbed 106% quarter-over-quarter to $568 million, and adjusted EBITDA reached $855 million—Alcoa's highest in several quarters—reflecting solid cost control and a more favorable product mix. Higher realized aluminum prices and easing input costs supported this growth, helping offset seasonal shipment declines and elevated raw material and energy expenses. Operationally, the majority of Alcoa's facilities posted increased production, all while maintaining a strong safety record. Strategically, Alcoa moved to reinforce its balance sheet and production capacity. A $1 billion debt refinancing in Australia enabled the company to repurchase nearly $890 million of 2027 and 2028 notes, extending debt maturities and lowering interest costs. Additionally, Alcoa formed a joint venture with IGNIS EQT to restart its San Ciprián smelter in Spain. This initiative, with Alcoa holding a 75% stake, fulfills a prior workforce agreement and brings in energy expertise to stabilize power costs at the facility. Though expected to generate up to a $100 million loss and $110 million cash outflow during ramp-up, the JV preserves critical smelting capacity in Europe and positions the site for future profitability. Management also highlighted ongoing deleveraging and portfolio repositioning efforts, including full acquisition of Alumina Limited and an agreement to exit the Ma'aden JV by Q2. However, investors are closely watching the impact of a newly imposed 25% U.S. tariff on Canadian aluminum imports, which took effect in March. Alcoa absorbed about $20 million in related costs during Q1, but the CFO warned that a full-quarter impact would be closer to $105 million, with an estimated $100 million annual drag on earnings after offsets. Despite forecasts, the Midwest Premium didn't rise sharply, staying below expected levels due to pre-tariff stockpiling and weak market sentiment. As U.S. inventories normalize, this could change. Altogether, while tariffs present a near-term earnings headwind, Alcoa's operational momentum, cost discipline, and strategic moves create a solid foundation for navigating uncertainty, making it a potential compelling investment that investors should watch out for. Alcoa Corporation (AA) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held AA at the end of the fourth quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of AA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
