So, Molson Coors (TAP 4.75%) took a tumble today, down nearly 5%. Which, let’s be real, is never a good look for a beverage company. It’s like showing up to a party and realizing you’re the only one who brought…water. Not exactly a vibe.
They were already feeling a little flat after last week’s earnings report – numbers that suggested people are maybe, possibly, drinking slightly less beer. Groundbreaking, I know. But then Bank of America decided to kick them while they’re down, issuing an “Underperform” rating. It’s a fancy way of saying, “We don’t think this stock is going to win any beauty contests.”
BofA’s Buzzkill
Analyst Peter Galbo at Bank of America downgraded Molson Coors from “Neutral” to “Underperform,” and lowered the price target from $50 to $42. Yesterday, the stock closed at $49.89. Which, honestly, feels like a really polite way of saying, “We’re bracing for a slightly soggy bottom line.” It’s like downgrading your vacation plans from a luxury resort to a staycation where you alphabetize your spice rack.
Apparently, the fourth-quarter results weren’t exactly inspiring, and the outlook for 2026 is…less than bubbly. Volume declines are a problem, obviously. It’s not exactly a surprise, though. People are getting into kombucha and sparkling water. It’s the 21st century; we’re all trying to be slightly healthier while still pretending we’re having fun.
Galbo pointed out that high fixed costs and inflation are squeezing earnings. Translation: even if they sell a little less beer, it costs them roughly the same amount to make it. It’s like trying to run a yacht club on a rowboat budget.
A Risky Brew?
After today’s dip, Molson Coors looks cheap. Trading at around 10 times this year’s earnings with a 3.9% dividend yield. Sounds good, right? Except they also have $5.4 billion in net debt. That’s like showing up to a potluck with a really nice casserole…and a hefty credit card bill.
A 2.3 times adjusted EBITDA leverage ratio isn’t terrible, but a declining business with that much debt isn’t exactly a recipe for a rapid turnaround. The trend of declining alcohol consumption is a thing. Molson Coors probably won’t go bankrupt, but don’t expect the stock to suddenly become the life of the party anytime soon. Unless, of course, they start selling limited-edition kombucha flavors. Now that would be a twist.
Read More
- 2025 Crypto Wallets: Secure, Smart, and Surprisingly Simple!
- Gold Rate Forecast
- Brown Dust 2 Mirror Wars (PvP) Tier List – July 2025
- HSR 3.7 story ending explained: What happened to the Chrysos Heirs?
- Gay Actors Who Are Notoriously Private About Their Lives
- ETH PREDICTION. ETH cryptocurrency
- Games That Faced Bans in Countries Over Political Themes
- Uncovering Hidden Groups: A New Approach to Social Network Analysis
- The Best Actors Who Have Played Hamlet, Ranked
- The 10 Most Beautiful Women in the World for 2026, According to the Golden Ratio
2026-02-26 00:12