Street Calls of the Week
Constellation Brands Inc Class A stock has reached a new 52-week low, hitting $149.42, down significantly from its 52-week high of $261.06. According to InvestingPro analysis, the stock appears undervalued at current levels. Despite the challenging year, the company maintains a 2.7% dividend yield and has raised dividends for 10 consecutive years. The decline underscores the challenges faced by the beverage giant over the past year, as it navigates a competitive market landscape and broader economic pressures. Management has been actively buying back shares, demonstrating confidence in the company’s future. Investors will be closely monitoring the company’s strategies to regain momentum and improve its financial performance in the coming months. Get deeper insights into Constellation Brands with InvestingPro, which offers exclusive analysis and 8 additional ProTips for this stock.
In other recent news, Constellation Brands reported first-quarter earnings per share of $3.22, which did not meet Wall Street expectations. This shortfall was attributed to softer organic sales growth, ongoing macroeconomic challenges, and volume declines in key brands. Despite these results, UBS raised its price target for Constellation Brands to $205.00, maintaining a Buy rating due to a positive long-term growth outlook. Conversely, Jefferies reduced its price target to $179.00, citing challenges in the Hispanic consumer segment. Evercore ISI maintained an Outperform rating with a $210.00 price target, highlighting uncertainties related to potential tariffs on Mexican imports. TD Cowen reiterated a Hold rating with a $180.00 price target, adjusting its fiscal year 2026 earnings per share estimate to $12.62 due to concerns about beer margins. Additionally, Constellation Brands announced equity grants for its CFO, Garth Hankinson, as part of its Long-Term Stock Incentive Plan. These recent developments reflect a mix of challenges and optimistic projections for the company.
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