How are energy investors positioned?
Investing.com - TD Cowen has reiterated its Hold rating and $180.00 price target on Constellation Brands (NYSE:STZ), currently trading at $171.21 with a market capitalization of $30.2 billion, citing concerns about beer margins and growth. According to InvestingPro data, analyst consensus remains moderately bullish with price targets ranging from $170 to $300.
The firm lowered its fiscal year 2026 earnings per share estimate to $12.62, which falls at the lower end of the company’s $12.60-$12.80 guidance range. The adjustment primarily reflects reduced beer assumptions, with TD Cowen now modeling a 20 basis point decline in FY26 beer operating margins, consistent with management’s expected impact from a 50% tariff on aluminum. InvestingPro data reveals that 8 analysts have recently revised their earnings estimates downward, suggesting growing caution about near-term performance.
TD Cowen also reduced its beer growth projections for fiscal year 2027 to 2.6%, comprising 1% volume growth and 1.6% price/mix improvement. Despite these adjustments, the firm maintained its $180 price target, representing a 13x price-to-earnings multiple on its FY27 estimated EPS of $13.71.
While Constellation Brands stock appears inexpensive compared to its five-year average P/E of 19x, TD Cowen believes the shares will remain range-bound in the near term. The firm cites two key factors needed before a more positive outlook: evidence of recovery in the brands’ core Hispanic consumer base and improved visibility to the company’s medium-term algorithm of 2-4% growth.
In other recent news, Constellation Brands reported first-quarter earnings per share of $3.22, which fell short of Wall Street expectations. Despite the weaker-than-expected results, the company maintained its fiscal year 2026 guidance, indicating stability in its outlook. UBS raised its price target for Constellation Brands to $205, maintaining a Buy rating, and emphasized a path to long-term growth. Meanwhile, RBC Capital reiterated its Outperform rating with a $233 price target, expressing confidence in the company’s near-term growth despite ongoing challenges. Goldman Sachs also maintained a Buy rating with a $225 price target, noting that Constellation Brands’ valuation is attractive compared to its industry peers. BofA Securities adjusted its price target to $182, maintaining a Neutral rating, and raised its full-year EPS estimate following the earnings report. These recent developments highlight the varied perspectives of analysts on Constellation Brands’ future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.