Molson Coors Beverage's (TAP) Q3 results are expected to reflect a "challenging" quarter as beer demand remains soft and company-specific headwinds persist, UBS Securities said.

The brokerage forecast Q3 earnings per share of $1.72, which is $0.03 above Visible Alpha and $0.01 above FactSet consensus, and said investor sentiment "remains mixed to slightly negative" heading into results.

UBS said in a Wednesday note that despite the stock's recent weakness following better-than-expected Q2 results, investors are likely to stay cautious amid uncertainty around category trends and limited visibility on the company's top- and bottom-line trajectory.

The base case expectation is for Molson Coors to maintain its current full-year outlook, though the firm said it "would not be surprised if the range is narrowed towards the lower end."

UBS projects 2025 organic sales to decline 4%, compared with Street estimates of 3.9%, and adjusted earnings per share of $5.44 versus the $5.41 consensus.

Molson Coors Beverage is scheduled to report its Q3 results on Tuesday.

The firm maintained a neutral rating on the stock, with a $49 price target.

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