Roth/MKM has adjusted its outlook for Constellation Brands (NYSE: NYSE:STZ), reducing the stock's price target to $298 from $303, while reaffirming a Buy rating on the shares.
The adjustment follows Constellation Brands' revised guidance, which was shared in preparation for an upcoming industry conference.
Constellation Brands, a producer and marketer of beer, wine, and spirits, revised its revenue expectations for its Beer and Wine & Spirits divisions downward.
The company also indicated that a significant portion of its Wine & Spirits segment's carrying value is impaired. Despite these adjustments, Constellation Brands has slightly increased its forecast for adjusted earnings.
Roth/MKM's decision to maintain a Buy rating reflects their continued confidence in Constellation Brands' performance. The slight reduction in the price target to $298 from $303 is a response to the company's latest financial projections and market conditions.
Constellation Brands has been navigating a dynamic market environment, adjusting its business strategy and financial outlook accordingly. The company's ability to revise its earnings outlook positively, even as it acknowledges challenges in its Wine & Spirits business, has been noted by investors and analysts alike.
In other recent news, Jefferies has revised its price target for Constellation Brands to $310, while Deutsche Bank lowered its target from $259.00 to $256.00. Despite these changes, both firms maintain positive ratings for the company.
Constellation Brands recently updated its fiscal year 2025 projections, now expecting a 6-8% growth in Beer net sales and a sales decline of 4-6% in its Wine & Spirits segment. However, the company raised the lower end of its total company earnings per share (EPS) guidance for FY25 to $13.60-$13.80.
Goldman Sachs maintained its Buy rating on Constellation Brands with a steady price target of $300.00, citing the robustness of the company's beer business model.
In governance news, Constellation Brands announced the resignation of board member Judy A. Schmeling, assuring there were no disputes linked to her departure.
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