Citi lowers Brown Forman stock price target citing sales trends

Published 06/06/2025, 10:58
Citi lowers Brown Forman stock price target citing sales trends

On Friday, Citi analysts lowered the price target for Brown Forman (NYSE:BFb) stock (NYSE:BF-B) to $28.00 from $35.00, while maintaining a Neutral rating. This adjustment follows a significant miss in Brown Forman’s fiscal fourth-quarter results, with revenue falling short of both consensus and investor expectations. The company cited weaker sales trends, particularly in the U.S. and developed international markets.

Brown Forman’s initial guidance for fiscal year 2026 also came in below expectations. The company projected organic sales growth and operating profit growth in the low single-digit negative range. Management attributed this outlook to ongoing macroeconomic challenges, including tariff-related uncertainties and a decline in expected barrel sales for the year.

Despite the negative sentiment leading up to the earnings release, Brown Forman’s stock traded down approximately 18% following the fiscal fourth-quarter results. The decline reflects the earnings miss and the lower-than-expected guidance for the upcoming fiscal year.

Citi analysts noted that the weakness in the spirits category appears to be cyclical and linked to macroeconomic factors rather than structural changes. The analysts remain Neutral on the stock, citing the difficulty in disproving the structural bear argument given the current trends, but acknowledging that the valuation is already below historical averages.

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.