On Wednesday, Truist Securities revised its price target for shares of Brown Forman (NYSE:BFb) (NYSE:BF-B), a prominent spirits company, moving the target down to $50.00 from the previous $80.00. Despite the significant reduction, the firm has decided to maintain its Buy rating on the stock.
The adjustment comes as Truist Securities recalibrates its financial forecasts for Brown Forman. The new estimates for fiscal year 2025 now stand at $4.194 billion in sales and earnings per share (EPS) of $1.84, which is a step down from the prior estimates of $4.364 billion in sales and an EPS of $2.02. Similarly, the sales and EPS estimates for the following fiscal year have been modified to $4.362 billion and $1.97 respectively, from the earlier projection of $4.539 billion in sales and an EPS of $2.16.
The analyst from Truist Securities has cited these revised estimates as the primary reason for the change in the price target. The new 12-month price target of $50 represents a notable decrease from the former target of $80. Despite this change, the firm's outlook on Brown Forman's stock remains positive, as reflected in the continued Buy rating.
The updated figures suggest Truist Securities' anticipation of a tempered performance for Brown Forman in the coming years. However, the firm's sustained endorsement of the stock with a Buy rating indicates a belief in the company's underlying value and potential for growth.
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