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Investing.com - UBS lowered its price target on Brown Forman (NYSE:BF-B) stock to $32.00 from $33.00 on Friday, while maintaining a Neutral rating following the company’s first-quarter results.
Brown Forman reported first-quarter results that missed expectations, with better operating performance due to favorable timing of shipments being more than offset by below-the-line headwinds. The company reiterated its fiscal year 2026 outlook for both top and bottom line performance.
UBS noted that while the quarterly results were initially viewed as better-than-feared by some investors, sentiment shifted as it became apparent that the tailwind helping first-quarter performance would likely reverse in the second quarter.
The investment firm pointed to anemic category demand across most developed markets, including both U.S. and international regions, as a continuing challenge for the spirits maker. This situation has created limited visibility on Brown Forman’s path forward.
Despite arguments for potential improvement based on rate of change and valuation, UBS indicated it would wait for greater signs of stabilized demand trends before taking a more constructive view on the stock.
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