Molson Coors Could Drop Another 3% as Barclays Slashes Target to $40 With Underweight Rating

"Barclays' bearish call is grounded in Molson Coors' own forward guidance, projecting underlying EPS to decline 11% to 15% in 2026 versus 2025, with underlying income before income taxes expected to fall 15% to 18%."

"Volume deterioration in the Americas has been significant, with financial volumes falling 8.5% in Q4 and U.S. brand volumes declining 5.1%, driven by industry softness and share losses in premium segments."

"Management launched a three-year cost savings program targeting up to $450 million, with savings beginning in 2026, alongside a $4 billion share repurchase authorization through December 31, 2031."

"Molson Coors declared a quarterly dividend of $0.48 per share, supported by full-year free cash flow of $1.14 billion, providing a 4.48% dividend yield for investors."

Molson Coors has experienced a decline in stock value, with shares down nearly 2% over the past week and over 13% year-to-date. Barclays has reduced its price target to $40, indicating potential further downside. Management's guidance suggests an 11% to 15% decline in underlying EPS for 2026. Volume deterioration in the Americas and elevated aluminum costs are significant challenges. A cost savings program aims to offset these issues, while a stable dividend provides some income for investors during this period of uncertainty.

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