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Investing.com - UBS raised its price target on Brown Forman (NYSE:BFb) (NYSE:BF-B) to $33.00 from $30.00 while maintaining a Neutral rating ahead of the company’s first-quarter earnings report.
The spirits maker is scheduled to report its first-quarter earnings on Thursday, August 28, before market open. UBS now forecasts earnings per share of $0.38, up from its previous estimate of $0.36, aligning with Visible Alpha consensus and slightly ahead of FactSet and Bloomberg consensus estimates.
UBS cited updated assumptions around consumer demand, currency fluctuations, and cost pressures as factors in its revised outlook. The firm noted that Brown Forman stock has performed well since its challenging fourth-quarter report in early June, gaining 12% compared to the broader Consumer Staples Select Sector SPDR Fund’s (XLP) 1.2% increase.
Despite the price target increase, UBS maintained its Neutral stance, noting ongoing debate among investors. The firm acknowledged that bearish investors remain concerned about weaker demand trends, while bullish investors believe the worst performance may be behind the company.
UBS concluded that visibility into sequential improvement outweighs valuation considerations at this stage, suggesting investors should wait for clearer signs of improvement before taking positions in the stock.
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