Market Overview

Stifel No Longer Craving Molson Coors, Downgrades To Hold

Stifel No Longer Craving Molson Coors, Downgrades To Hold
Related TAP
Molson Coors On Track To Outperform Beer Peers, Susquehanna Says
Bank of America's Favorite Stock Ideas For 2019

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.

Related Links:

Trump's Tariff Decision Could Make Your Beer More Expensive: Here's How

Credit Suisse: A 'Unique Opportunity' Makes Molson Coors An Attractive Stock

Latest Ratings for TAP

Dec 2018UBSInitiates Coverage OnBuy
Nov 2018CitigroupMaintainsBuyBuy
Oct 2018Standpoint ResearchInitiates Coverage OnBuy

View More Analyst Ratings for TAP
View the Latest Analyst Ratings

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


Related Articles (TAP)

View Comments and Join the Discussion!

Latest Ratings

CNPRBC CapitalUpgrades34.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Benzinga's Top Upgrades, Downgrades For May 17, 2018

Benzinga's Daily Biotech Pulse: ASCO Abstracts, Fibrocell, Ispen And More