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Stifel No Longer Craving Molson Coors, Downgrades To Hold

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Stifel No Longer Craving Molson Coors, Downgrades To Hold
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Some drinkers think Molson Coors Brewing Co Class B (NYSE: TAP) is going flat, and they’re setting it aside for something more flavorful.

The Rating

Stifel Nicolaus analysts Mark Swartzberg, Christopher Sinnott and Ryan Robinson downgraded Molson Coors to Hold and cut their price target from $71 to $65.

The Thesis

Sales volume across the U.S. industry continues to deteriorate, and Stifel anticipates 1.5-percent annual contraction through 2030 as per capita alcohol consumption declines. These factors compound a demographic shift toward wine, spirits and higher-end beer.

“Managers are focused on improved trends across price points, but consumption patterns favor smaller, more premium brands,” the analysts wrote in a Thursday note.

Altogether, conditions render multiple expansion unlikely.

Stifel anticipates flat earnings before interest, taxes, depreciation and amortization with stock appreciation driven only by annual deleveraging.

Price Action

At time of publication, shares were set to open down about 1 percent at a rate of $59.54.

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Latest Ratings for TAP

DateFirmActionFromTo
Sep 2018GuggenheimInitiates Coverage OnNeutral
Sep 2018JefferiesInitiates Coverage OnUnderperform
Aug 2018CitigroupMaintainsBuyBuy

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Posted-In: Christopher Sinnott Mark Swartzberg Ryan Robinson Stifel NicolausAnalyst Color Downgrades Price Target Analyst Ratings Best of Benzinga

 

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