In a note to investors, analyst Steve Powers said the company’s fourth-quarter earnings revealed revenue growth was slowing more than anticipated. The results weakened Deutsche Bank’s belief Molson Coors has “prospects for stabilized/improved top-line trajectory.”
Also contributing to the downgrade: “material weakness in financial reporting … albeit seemingly contained.” Molson Coors restatement of earnings has led at least five law firms to consider filing class action suits against the company, as we reported this morning.