Shares of Molson Coors Brewing shot to a record high Monday amid expectations that the beer industry will keep consolidating.
The move means Molson Coors stock may look bubbly: It's trading at 20 times its earnings per share over the last 12 months, compared with an average price-earnings ratio of 15 over the last five years. But some analysts say the stock could rise still higher if the industry does indeed see more mergers.
The latest industry action is coming from SABMiller, the world's second-largest brewer. Heineken says that SABMiller approached it about an acquisition, but Heineken wants to remain independent. The move may have been a defensive one: Analysts say SABMiller may be trying to fend off its own takeover attempt, one by Anheuser-Busch InBev, the world's largest brewer.
Total returns through Sept. 15
Source: FactSetAssociated Press
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