Bank of America just raised its EUR/USD forecast
Investing.com - RBC Capital has reiterated its Outperform rating on Constellation Brands (NYSE:STZ) with a price target of $233.00, following the company’s recent quarterly results. According to InvestingPro data, this target represents a 21% upside potential from the current price of $174.41.
The alcoholic beverage company delivered quarterly performance largely in line with expectations, in what analysts had anticipated would be a challenging period. The company maintains a healthy gross profit margin of 51.7% and a solid current ratio of 1.07. Despite the results not significantly altering RBC’s investment thesis, the firm maintained its positive outlook on the stock.
RBC noted that while macroeconomic conditions and shifting consumer behaviors continue to present challenges for Constellation Brands, these factors appear manageable as beer sales comparisons begin to ease in upcoming quarters.
The firm expressed encouragement regarding management’s expectations for near-term growth, suggesting confidence in the company’s forward trajectory despite current market headwinds.
Constellation Brands, which owns popular beer brands Corona and Modelo along with wine and spirits products, continues to navigate a competitive alcoholic beverage landscape while positioning itself for future growth opportunities.
In other recent news, Constellation Brands reported its first-quarter earnings for fiscal year 2026, revealing an earnings per share (EPS) of $3.22 and revenue of $2.52 billion. These figures fell short of analyst expectations, with the EPS missing forecasts by 5.57% and revenue coming in 1.56% below projections. Despite the earnings miss, the company maintained its full-year guidance, anticipating growth in beer volumes and benefiting from easier comparative periods in the upcoming months. Goldman Sachs reiterated a Buy rating for Constellation Brands, maintaining a $225.00 price target despite the disappointing results. The firm noted that the company trades at a 13% discount to its alcohol industry peers, which it views as a compelling valuation. Meanwhile, RBC Capital reiterated an Outperform rating with a $233.00 price target, expressing confidence in the company’s near-term growth expectations. BofA Securities raised its price target slightly to $182.00 while maintaining a Neutral rating, acknowledging the company’s reiterated fiscal year 2026 outlook. These developments indicate ongoing investor confidence in Constellation Brands’ strategic initiatives and growth prospects despite recent challenges.
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