- Bank of America Merrill Lynch drops Molson Coors Brewing Company (NYSE:TAP) two notches to an Underperform rating from Buy.
- "TAP has integrated the MillerCoors and Miller International acquisitions well from a cost and cash flow perspective while sales have lagged," notes BAML.
- "We see heightened potential that TAP will need to increase spending to stabilize market share on core brands and accelerate investments in premium/'beyond' beer segments over the next year," warns the firm.
- BAML's price objective goes all the way down to $50 from $70 to factor in lower EPS estimates for FY19 and FY20. The average sell-side PT is $65.94.
- Shares of TAP are down 1.77% premarket to $53.43.