Barclays cuts Barry Callebaut to 'underweight' on cocoa price risk

Barry Callebaut AG

27/03/2026 09:13

** Barclays cuts Swiss chocolate manufacturer Barry Callebaut BARN.S to "underweight" from "equal-weight" due to the increasing risk of a rebound in cocoa bean prices

** The brokerage says structural supply challenges and higher fertiliser costs raise the likelihood of a price rebound which could threaten the free cash flow outlook

** The broker notes the chief executive's plan to restore competitiveness raises the likelihood of a margin reset which may cap earnings before interest and taxes recovery

** Barclays adds inflation delays chocolate consumption recovery while glucagon-like peptide-1, an appetite-regulating hormone, tempers growth in ice cream and snacks

** The brokerage cuts its adjusted earnings per share forecasts for FY 2027 and FY 2028 and states that it sees the "risk/reward as skewed to the downside" for the stock

** Shares in Barry Callebaut are down 3.7% as of 0900 GMT

 (Reporting by Maria Rugamer)

 ((Maria.Rugamer@thomsonreuters.com))