Bernstein reiterates Outperform rating on Constellation Brands stock amid challenges

Published 02/07/2025, 14:58
Bernstein reiterates Outperform rating on Constellation Brands stock amid challenges

Investing.com - Bernstein has reiterated an Outperform rating and $225.00 price target on Constellation Brands (NYSE:STZ) following the company’s Q1 earnings report. According to InvestingPro data, analyst targets range from $170 to $300, with the stock currently trading at $168.25, near its 52-week low.

The beer maker reported beer depletions of -2.6% year-over-year, which Bernstein noted was slightly better than expected and in line with consensus estimates, despite challenging market conditions.

Profits modestly missed expectations due to increased marketing investments, according to Bernstein’s analysis of the quarterly results.

The firm highlighted that weak scanner data for both Constellation and the broader industry had been evident prior to the earnings release, with certain Hispanic consumers—part of Constellation’s core customer base—reducing shopping and socializing amid concerns about potential immigration policies.

Despite these headwinds, Constellation Brands maintained its fiscal 2026 guidance, which Bernstein viewed as a positive sign amid the current market challenges.

In other recent news, Constellation Brands reported first-quarter earnings per share of $3.22, which fell short of Goldman Sachs’ estimate of $3.45 and consensus expectations of $3.31. Despite the earnings miss, Goldman Sachs maintained its Buy rating and $225 price target, noting the company’s reaffirmed fiscal year 2026 guidance. Meanwhile, RBC Capital reiterated an Outperform rating with a $233 price target, despite anticipating a near-term decline in beer sales due to macroeconomic pressures. Evercore ISI also maintained an Outperform rating, highlighting the successful launch of Corona Sunbrew and strong brand loyalty. Morgan Stanley (NYSE:MS) kept its Equalweight rating with a $195 price target, citing both short-term and long-term pressures on beer volumes, including health trends and cannabis substitution. UBS lowered its price target to $195 but retained a Buy rating, forecasting earnings per share of $3.15, below consensus estimates. Analysts from these firms see potential for Constellation Brands to improve its growth profile over time despite current challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.