08/27/13 12:02 pm ET ... S&P LOWERS OPINION
ON SHARES OF MOLSON COORS BREWING TO
STRONG SELL FROM HOLD (TAP 49.31*): On revised multiple analysis, we cut our target price
to $44 from $54 and our '14 EPS estimate $0.01
to $4.16 on a lower forecast for MillerCoors equity income. Although we lifted our '13 estimate
following Q2 results, the increase mostly reflected a lower tax rate rather than operational
improvement. While we expect volumes to improve from more normalized weather in the U.S.
and Europe, we see challenges for the beer
category overall, which we think will continue
to lose share to spirits and wine long term. We
also look for more moderate benefit from cost cuts.
With my long term investment plan in place here, I figure that I'll be in this stock long enough to see S&P change their opinions on TAP at least 20 or 30 times. If they want to start the party at "strong sell", then that's fine with me. I never made a ton of profits from following S&P's opinions, anyway. In fact, the most money that I've ever made on Wall Street was from doing the opposite of what the "expert" analysts recommended that I do with my stock positions. That's particularly true when it comes to Jim Cramer, by the way. What's his opinion on TAP right now, anyway?