Molson Coors (TAP) reported better-than-expected second-quarter 2010 results, beating the Zacks Consensus Estimate by $0.06. The company’s healthy balance sheet and cost saving programs support its investment in brands and innovation.
However, the company s susceptibility to the global economic downturn and predominant operations in mature and low-growth markets, coupled with stiff competition and seasonality of business, severely undermines the company s future growth prospects and profitability.
The recommendation for the stock still remains Underperform as we prefer to wait until the company starts reaping the benefits of its restructuring initiatives.
MOLSON COORS-B (TAP): Free Stock Analysis Report
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