Street Calls of the Week
Constellation Brands Inc Class A stock reached a 52-week low, trading at $159.34. This marks a significant decline for the company, which has seen its stock price drop by 33.56% over the past year. According to InvestingPro analysis, analysts maintain a positive outlook with price targets ranging from $170 to $247, suggesting potential upside. The company offers a 2.5% dividend yield and has raised dividends for 10 consecutive years. The beverage company, known for its popular brands like Corona and Modelo, has faced challenges in the market, contributing to this downturn. The current low underscores the volatility and pressures within the industry, as well as the broader economic factors affecting consumer goods companies. Investors will be closely monitoring the company’s strategies to reverse this trend and regain market confidence. InvestingPro subscribers can access 8 additional key insights about Constellation Brands, including detailed Fair Value analysis and management’s share buyback activities.
In other recent news, Constellation Brands reported first-quarter earnings per share of $3.22, which fell short of Wall Street expectations. The shortfall was attributed to softer organic sales growth, a weaker beer category, ongoing macroeconomic challenges, and volume declines across key brands. UBS responded by raising its price target for Constellation Brands to $205, maintaining a Buy rating despite the weaker-than-expected results. RBC Capital also reiterated its Outperform rating with a price target of $233, expressing a positive outlook on the stock.
Additionally, Evercore ISI maintained its Outperform rating and a $210 price target, citing concerns over potential tariffs on Mexican imports. TD Cowen, however, maintained a Hold rating with a $180 price target, lowering its fiscal year 2026 earnings per share estimate to $12.62. This adjustment reflects concerns about beer margins and growth, particularly in light of a potential 50% tariff on aluminum. Furthermore, Constellation Brands’ board approved equity grants for CFO Garth Hankinson, including restricted stock units and performance share units. These recent developments provide investors with a comprehensive view of the company’s current standing and future prospects.
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