03:51 PM EDT, 06/27/2025 (MT Newswires) -- Molson Coors Beverage's ( TAP/A ) 2025 and 2026 earnings are likely to take a hit amid declining beer consumption trends in the US, BofA Securities said Friday.

The brokerage reduced its earnings outlook for the US-Canadian brewer to $5.70 a share from $6.02 for this year and to $6.02 from $6.55 for the next. BofA downgraded its rating on the stock of the owner of Coors Light, Miller Lite and other brands to neutral from buy and cut its price objective to $50 from $65.

Molson Coors ( TAP/A ) shares were down 0.2% ahead of Friday's close. The stock has lost nearly 18% in value so far this year.

BofA said it upgraded Molson Coors ( TAP/A ) in December amid expectations that its market share would stabilize, but that didn't happen.

"The US beer industry continues to decline below historic trends, market share loss continue and valuation reflects uncertainty," BofA analyst Bryan Spillane said in a Friday note to clients. The downgrade and price target reduction put the company "more in line with US packaged food industry peers where the industry growth dynamics are similar," Spillane wrote.

BofA's revised earnings estimates incorporate a weaker-than-projected second quarter in the US and a moderating of its revenue guidance for 2025 and 2026, reflecting its reduced outlook for the US beer industry, according to the note. "It will be difficult for (Molson Coors ( TAP/A )) to achieve what we expected, with the industry slump continuing," Spillane said.

Last month, the company tempered its outlook for 2025 underlying earnings and net sales after its first-quarter results fell year over year.

"The global macroeconomic environment is volatile," Chief Executive Gavin Hattersley said at the time. "Uncertainty around the effects of geopolitical events and global trade policy, including the impacts on economic growth, consumer confidence and expectations around inflation, and currencies has pressured the beer industry and consumption trends."

Earlier this year, Hattersley informed the company that he planned to retire by the end of 2025.

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