Molson Coors - Bear of the Day

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.
 
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