USA: Shares of Molson Coors Brewing down after analysts’ downgrade
Shares of Molson Coors Brewing Co. dipped on April 10 after an analyst downgraded the company, saying weak sales in Britain offset an upturn in Canada, according to Associated Press.
Marc Greenberg of Deutsche Bank said that although retail softness in the United Kingdom could be relieved by the World Cup soccer tournament this summer, the event could be a mixed bag for Molson Coors.
"While the World Cup is likely to boost beer volumes, Carlsberg is the official sponsor, and discounting may pick up, putting our second-quarter numbers at risk," Greenberg said in a note to clients.
"We expect steady progress in the U.S. and possibly compelling upside in Canada as volume and share trends are turning, but U.K. softness is persistent and likely to weigh on results."
Molson Coors shares were down 63 cents at $67.72 late Monday morning on the New York Stock Exchange, after going as low as $66.55. The stock's 52-week high was a year ago at $79.24.
Greenberg downgraded the stock to "Hold" from "Buy" while maintaining his 2006 earnings estimate of $4.54 per share.Analysts on average predict a 2006 profit of $4.29, according to Thomson Financial.
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