Bank of America just raised its EUR/USD forecast
Investing.com - BofA Securities raised its price target on Constellation Brands (NYSE:STZ) to $182.00 from $180.00 while maintaining a Neutral rating on the stock. The beverage giant, currently trading at $173.85 with a market cap of $30.8 billion, has shown resilience despite trading near its 52-week low. According to InvestingPro analysis, the stock appears fairly valued based on its proprietary Fair Value model.
The price target adjustment follows Constellation Brands’ fiscal first-quarter 2026 earnings report released Tuesday, which showed earnings per share of $3.22, exceeding BofA’s estimate of $3.00.
Constellation Brands reiterated its fiscal year 2026 financial outlook during the earnings announcement, prompting BofA to raise its full-year EPS estimate from $12.66 to $12.75.
BofA’s revised forecast assumes beer sales will grow at the low end of the company’s outlook range of 0-3%, with operating profit growing slightly below the midpoint of the 0-2% outlook range.
The company expects beer depletions to meaningfully improve from current levels and turn positive in the second quarter due to easier year-ago comparisons, though BofA expressed some skepticism, noting that quarter-to-date retail volumes are down mid-single digits.
In other recent news, Constellation Brands reported its earnings for the first quarter of fiscal year 2026, missing analyst expectations on both earnings per share (EPS) and revenue. The company posted an EPS of $3.22, which was below the anticipated $3.41, and reported revenue of $2.52 billion, falling short of the forecasted $2.56 billion. Despite these misses, Constellation Brands maintained its full-year guidance, indicating confidence in future performance. The company attributed some of its resilience to operational improvements and new product launches, which have bolstered market share in the high-end light beer segment. Analyst firms, including Morgan Stanley (NYSE:MS), have been actively discussing the company’s unchanged full-year beer revenue growth outlook amidst industry challenges. Moreover, Constellation Brands has faced economic uncertainties and consumer concerns, particularly within the Hispanic market, which comprises a significant portion of its consumer base. The company has also been focusing on strategic hedging to mitigate currency risks, as highlighted by their CFO. These developments reflect Constellation Brands’ strategic efforts to navigate a challenging economic landscape while maintaining investor confidence.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.