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