This sentence is correct. It means that when you talked to him, he would like a cup of coffee in that moment. If you use the tense change for "would" as well (He said he would have loved a cup of coffee) it means that when you talked to him, he said he would've liked a cup of coffee at another occasion that's even more further in the past than your talk. "He said he would love a cup of coffee so I made him one." "He said (on tuesday) he would've loved a cup of coffee (on sunday)." These sentences don't make much sense alone, but it conveys the feeling of the past tense well. Hope this helps!

More information here: https://www.ef.com/ca/english-resources/english-grammar/tense-changes-when-using-reported-speech/ excerpt These modal verbs do not change in reported speech: might, could, would, should, ought to: We explained, "It could be difficult to find our house." = We explained that it could be difficult to find our house. She said, "I might bring a friend to the party." = She said that she might bring a friend to the party. For much, much more information: Practical English Usage by Swan (a well-known, readable grammar reference for teachers and advanced students).