Morgan Stanley Tepid On Molson Coors

In a note to clients today, Morgan Stanley reiterated an equal-weight rating on Molson Coors TAP, noting that while holiday beer pricing remains strong, that will be offset by slack volumes. “Our survey results suggest that volume struggles will likely continue going forward, as distributors do not expect a pickup in volume this holiday season relative to recent trends. Also, two-thirds of the distributors believe the volume slowdown in the beer industry is more secular in nature, as opposed to a short-term macro-driven cyclical issue,” the bank said in the note. Morgan Stanley said the stock may look cheap on a valuation basis, but added EPS estimates are probably too high. Shares of Molson Coors are up 1.5% today.