TAP Stock Price | Molson Coors Beverage Co. Cl B Stock Quote (U.S.: NYSE)

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Molson Coors stock now a ‘strong sell’ at CFRA ahead of earnings, as shift to hard seltzer is ‘too late’

Molson Coors Beverage Co. was downgraded Tuesday to strong sell from sell at CFRA, a day before the beer brewer is scheduled to report fourth-quarter results. Analyst Garrett Nelson kept his stock price target at $48, but that is 17% below current levels. He cut his kept his 2019 adjusted earnings per share estimate at $4.30–the FactSet consensus is $4.29–but lowered his 2020 estimate to $4.10 (FactSet consensus $3.96) from $4.35, citing his belief that the continued decline in domestic beer consumption will keep weighing on Molson’s earnings and sales. He quoted data from alcohol beverage trend tracker IWSR showing U.S. beer volume fell 2.3% in 2019 for a fourth-straight yearly decline, with sales of domestic brands falling even faster at 3.6%. “[Molson’s] flagship brands continue to struggle, as millennials continue to drink less beer and more spirits and hard seltzers,” Nelson wrote in a note to clients. “We think [Molson’s] shift into the increasingly competitive seltzer market comes too late.” The stock, which gained 0.5% in afternoon trading, has lost 11.0% over the past 12 months, while the S&P 500 has gained 24.1%.






2020-02-11 19:15:56

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