Molson Coors Downgraded to Hold by TD Cowen
Company Reports Strong Second Quarter Profits
Analyst Downgrade Based on Favorable Pricing and US Shipment Timing
WEB TD Cowen downgraded Molson Coors Beverage Company NYSETAP to a Hold rating on August 7, 2024, after having previously rated the beer stock as Buy. Despite the downgrade, Molson Coors TAP realized a 79% increase in profits for the second quarter to $1.92 per share, driven by favorable pricing and US shipment timing.
The downgrade from TD Cowen was based on the analyst's belief that Molson Coors Beverage's strong performance in the second quarter was likely driven by one-time factors and that the company may face challenges in sustaining this level of growth in the future.
Despite the downgrade, Molson Coors Beverage remains a strong player in the beer industry. When a conservative-led boycott hit Bud Light's sales last year, Molson Coors Beverage Co was among the brewers whose sales increased. This suggests that the company is well-positioned to capitalize on opportunities in the beer market, even in challenging economic conditions.
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