Constellation Brands: Analysts Maintain Ratings

LOS ANGELES- On Monday, Argus reaffirmed its Buy rating on shares of Constellation Brands (NYSE: STZ), maintaining a price target of $306.00. Argus notes the stock’s value, currently trading at 18 times the firm’s fiscal year 2025 earnings estimate, and supports a higher multiple due to expected sales and earnings growth.

Constellation Brands, known for its Corona and Modelo beer brands as well as its wines and spirits, is viewed favorably by Argus for several reasons. The company’s plans to increase beer production and the potential for higher dividends are significant factors contributing to this outlook.

The price target of $306.00 reflects Argus’s assessment of Constellation Brands’ financial performance and strategic initiatives, indicating stability in their analysis and expectations of the company’s market trajectory. Such ratings and price targets are often used by investors and market watchers as indicators of a stock’s potential performance.

In recent earnings news, Constellation Brands reported first-quarter results for fiscal year 2025, with earnings per share (EPS) of $3.57, exceeding consensus estimates. This was driven by beer margins and reduced interest expenses.

BMO Capital Markets also maintained its rating, reiterating an Outperform rating and a $315 price target. Beer sales increased by 8%, aligning with forecasts despite falling slightly short of expectations.

Constellation Brands confirmed its guidance for fiscal year 2025, indicating financial stability. The company returned $185 million to shareholders through dividends and executed $200 million in share repurchases.

Several analyst firms, including TD Cowen, Wells Fargo, Roth/MKM, BMO Capital, and Jefferies, have maintained ratings for Constellation Brands, reflecting their views on the company’s potential for growth and profitability.

Roth/MKM recently adjusted its price target for Constellation Brands to $303 from $305, maintaining a Buy rating. This adjustment follows the company’s first-quarter results, with revenue and increased beer profitability driving EPS above expectations.

Constellation Brands is expected to benefit from beer industry trends and consumer uptake, as indicated by its beer scanner trends. The company’s on-premise sales are anticipated to increase, especially with Modelo gaining tap handles and Corona’s performance normalizing. Planned price increases in the fall are expected to impact margins.

The maintained Buy rating, despite the slight decrease in the price target, reflects continued confidence in Constellation Brands’ market position and its ability to leverage current trends. Strategic moves and market dynamics are seen as factors for financial performance.

Constellation Brands has started fiscal year 2025 with results in its Beer division. The company’s first-quarter earnings surpassed estimates, with BMO Capital maintaining an Outperform rating and a $315.00 price target. Jefferies also raised its target price to $311, citing volume growth and margins. Despite a 7% decline in Wine and Spirits net sales, the company is on track to meet its full-year guidance.

Constellation Brands continues its dividend increases. Analysts predict continued profitability for the company, supported by a P/E ratio and market capitalization.

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