On Monday, Truist Securities adjusted its stance on shares of Brown Forman (NYSE:BFb) (NYSE:BF-B), downgrading the stock from Buy to Hold and reducing the price target to $45 from the previous $50.
The change reflects a revised outlook on the company's financial performance, with sales and earnings per share (EPS) estimates for fiscal years 2025 and 2026 being lowered. The new forecasts stand at $4.079 billion in sales with $1.74 EPS for FY25, and $4.159 billion in sales with $1.82 EPS for FY26, scaled back from earlier projections of $4.129 billion/$1.81 and $4.233 billion/$1.89 respectively.
" In our opinion, the core Jack Daniel's Brand has lost its premium luster with US consumers and will continue to underperform the category until the company meaningfully revamps its marketing efforts," Truis analysts said.
The firm also expresses skepticism regarding Brown Forman's own forecasts for top-line growth in the second half of fiscal year 2025. The company has predicted an industry rebound post-pandemic, but Truist suggests these expectations may be overly optimistic.
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