Truist maintains Buy rating on Brown Forman stock despite flat outlook

Published 29/08/2024, 18:00
Truist maintains Buy rating on Brown Forman stock despite flat outlook

On Thursday, Truist Securities maintained its Buy rating and $50.00 price target for shares of Brown Forman (NYSE:BFb) (NYSE:BF-B), following the release of the company's financial results. While acknowledging the results as disappointing, the firm highlighted that the market did not have high expectations for the quarter due to the lack of quarterly guidance from the company.

Brown Forman's management remains optimistic, expecting sales trends to improve sequentially and anticipating a rebound in the spirits industry throughout the year. The first quarter is typically a smaller period for the company, but thus far, the firm has not seen evidence to support the company's positive outlook.

The performance of Brown Forman's shares has been closely aligned with the broader market, showing a slight increase of 4.2% compared to the S&P 500's 4.5% rise since the last earnings report. Truist Securities predicts that the stock will likely open flat to down due to the company's earnings miss on both the top and bottom lines, especially considering the challenging comparison from the previous year.

Investors are now looking forward to the company's call to gain insights into whether the fiscal year 2025 outlook will be adjusted in light of the recent quarter's performance. The firm's commentary suggests a cautious watch on the stock as the market reacts to the latest financial data and future projections.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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