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Investing.com - RBC Capital maintained its Sector Perform rating and $30.00 price target on Brown Forman (NYSE:BF-B) on Tuesday, expressing caution about the company’s near-term outlook.
The investment firm highlighted concerns about pressure in the U.S. market, which it expects to be "exacerbated by execution challenges" as Brown Forman undergoes changes in its distribution network.
While RBC acknowledged that international growth should provide some support for the company’s top line, it remains cautious about the overall revenue outlook.
The firm noted that Brown Forman itself does not expect the distributor transition to proceed seamlessly, identifying this area as posing "the biggest risk to numbers" since company guidance calls for sequential improvement in trends.
RBC indicated it would need to see "greater signs of underlying topline stabilization in the US" before adopting a more positive stance on the stock.
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