Deutsche Bank lowered its rating of Molson Coors Brewing stock to hold from buy, following the company’s “disappointing results and outlook” from earnings.
“We can no longer defend a 12-month buy case,” Deutsche Bank’s Steve Powers said in a note to investors.
Molson Coors stock dropped nearly 10 percent on Tuesday after the company reported fourth-quarter earnings that revealed revenue growth was slowing more than Wall Street anticipated.
Deutsche Bank said the results weakened its conviction that Molson Coors has “prospects for stabilized/improved top-line trajectory.” It also cited the brewer’s “material weakness in financial reporting … albeit seemingly contained.”
“We wish we had better timing,” Powers said.
Shares of Molson Coors gained Wednesday despite the downgrade and closed at $59.68 a share, up 0.8 percent on the session. Deutsche Bank also lowered its price target on Molson Coors to $63 a share from $72.
