What Happened?
Shares of beer company Molson Coors (NYSE: TAP) fell 3.3% in the afternoon session after BNP Paribas SA downgraded the stock to underperform from a neutral rating.
The firm also set a price target of $40 for the beverage company. This change in rating suggested a more cautious view of the company's future performance, which appeared to influence investor sentiment.
The shares closed the day at $48.96, down 3.3% from previous close.
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What Is The Market Telling Us
Molson Coors’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 5% on the news that the company reported second-quarter earnings and revenue that surpassed Wall Street expectations.
The beer maker posted adjusted earnings of $2.05 per share, which topped the average analyst estimate of $1.83. Revenue also exceeded forecasts, coming in at $3.2 billion. However, this figure marked a 1.6% decrease from the prior year. Despite the quarterly beat, Molson Coors cut its full-year earnings outlook, citing economic pressures and aluminum tariffs. The positive market reaction indicated investors weighed the strong quarterly results more heavily than the cautious guidance for the future.
Molson Coors is up 3.3% since the beginning of the year, but at $48.96 per share, it is still trading 22.2% below its 52-week high of $62.91 from March 2025. Investors who bought $1,000 worth of Molson Coors’s shares 5 years ago would now be looking at an investment worth $940.90.
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