On Monday, Truist Securities adjusted its price target for Constellation Brands (NYSE:STZ) stock, a company listed on the New York Stock Exchange (NYSE: STZ), from the previous $255.00 down to $190.00. The firm maintained its Hold rating on the stock. The revision follows a recent analysis update from Friday.
The adjustment comes as the stock has experienced significant pressure, falling 18.45% in the past week and currently trading near its 52-week low of $179.55. According to InvestingPro analysis, the stock appears slightly undervalued based on its proprietary Fair Value model.
In a statement, Truist Securities provided insight into the rationale behind the adjustment, stating, "We are lowering our FY25 Sales/EPS ests. to $10.27B/$13.49 from $10.44B/$13.70 prior, our FY26 sales/EPS ests. to $10.58B/$14.16 from $10.97B/$14.86 prior, and introducing FY27 sales/EPS ests. of $10.85B/$14.93." The firm further detailed the changes to its financial forecasts for Constellation Brands, indicating a more conservative outlook for the company's future performance. InvestingPro data shows that 5 analysts have recently revised their earnings estimates downward, while the company maintains a high P/E ratio of 49.14.
The reduction in the price target to $190.00 from the previous $255.00 is significant and reflects Truist Securities' updated expectations for Constellation Brands' sales and earnings per share (EPS) over the next several years. Despite the lowered estimates, Truist Securities has opted to maintain a Hold rating on the stock, suggesting that the firm does not see significant upside or downside potential at the current time.
Constellation Brands, known for its portfolio of beer, wine, and spirits, has been evaluated by Truist Securities based on projected financial metrics that span into fiscal year 2027. The introduction of these new estimates provides investors with a longer-term perspective on the company's anticipated financial trajectory.
With a market capitalization of $33.48 billion, the company has demonstrated resilience through consistent dividend growth, having raised its dividend for 10 consecutive years. For deeper insights into Constellation Brands' financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
The revised price target and maintained rating by Truist Securities are likely to be of interest to current and potential investors of Constellation Brands, as they reflect the firm's latest analysis and expectations for the company's financial performance in the coming years.
In other recent news, Constellation Brands has been under the microscope of various firms following its recent earnings report.
Bernstein SocGen Group sustained an Outperform rating for the company, despite a series of setbacks, particularly in its beer segment. The company reported a 3.2% growth in Q3 F25 depletions and a shipment growth of 1.6%, which led to Q3 beer net sales of $2,032 million. Adjustments in FY25 guidance were made in light of these results.
TD Cowen maintained a Hold rating on the stock following the third-quarter results, which fell short of expectations despite increased marketing efforts. The firm revised their price target for Constellation Brands, citing factors such as a prolonged trend of value-seeking behavior among consumers and intensified price competition in the light beer segment.
Analysts at Jefferies downgraded the company's stock from 'Buy' to 'Hold', reducing the price target significantly. The downgrade was influenced by the company's miss across all segments and a downward revision of its guidance. Similarly, JPMorgan downgraded the stock from 'Overweight' to 'Neutral', citing concerns over sustained economic pressure on lower-income and Hispanic consumers.
Finally, CFRA analyst Garrett Nelson downgraded Constellation Brands stock from a Strong Buy to a Buy and reduced the 12-month price target. The adjustment followed the company's November-quarter adjusted EPS report, which fell short of the consensus estimate.
Despite these developments, Constellation Brands remains a leading company in the sector with potential for continued market share growth in the domestic beer market.
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