Deutsche Bank lowered its rating of Molson Coors Brewing stock to hold from buy, following the company's "disappointing results and outlook" from earnings.
"We can no longer defend a 12-month buy case on [Molson Coors]," Deutsche Bank's Steve Powers said in a note to investors.
Molson Coors stock dropped nearly 10 percent on Tuesday after the company reported fourth-quarter earnings that revealed revenue growth was slowing more than Wall Street anticipated. Deutsche Bank said the results weakened the firm's conviction that Molson Coors has "prospects for stabilized/improved top-line trajectory." Additionally, Deutsche Bank said the company's "material weakness in financial reporting ... albeit seemingly contained" also made the firm unable to stick to its buy rating.
"We wish we had better timing," Powers said.
Shares of Molson Coors were largely unchanged in premarket trading from Tuesday's close of $59.19 a share. Deutsche Bank also lowered its price target on Molson Coors to $63 a share from $72 a share.
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