UPDATE: Bank of America Downgrades Molson Coors Brewing from Neutral to Underperform

Bank of America has published a report on Molson Coors Brewing (NYSE: TAP) lowering the rating from Neutral to Underperform.In the report, Bank of America wrote, "Many of the data points critical for healthy beer trends remain challenging in our view, including a lowered GPD outlook; weak beer industry trends across its markets; persistent unemployment; lower beer preference by young adults as shown by recent polls (page 8); and more attractive relative pricing for consumers in other US alcoholic beverage segments (we favor spirits here). We were admittedly encouraged by its buy-back announcement and expect strong free cash flows this year, however we see uncertain category trends, higher input costs, international spending and some M&A risk as offsets. We lower our FY11-FY12E EPS by 18c and 16c to $3.44 and $3.77, resp. We keep TAP's PO of $47 unchanged, reflecting a near flat P/E multiple from here (or 12.5x) on our revised 2012 est.; but given near-term caution and some further macro risks potentially pressuring the category, we lower our opinion to Underperform from Neutral."Bank of America downgraded Molson Coors from Neutral to Underperform and gave it a price target of $47. Molson Coors closed Tuesday at $44.33.