Bank of America Upgrades Constellation Brands (NYSE:STZ) to Neutral

Key Points

• Bank of America upgraded Constellation Brands from “underperform” to “neutral” and set a $160 price target, implying 16.1% upside from the cited share price.
• Analyst views remain mixed: MarketBeat reports an average “Hold” rating and a consensus price target of $154.09, with 12 Buy, seven Hold, and four Sell ratings.
• In its latest reported quarter, Constellation earned $3.74 per share and generated $2.63 billion in revenue, topping estimates; revenue increased 6.1% year over year.

Constellation Brands (NYSE:STZ - Get Free Report) was upgraded by equities researchers at Bank of America from an "underperform" rating to a "neutral" rating in a research report issued to clients and investors on Wednesday, Marketbeat Ratings reports. The firm currently has a $160.00 price objective on the stock. Bank of America's price objective would indicate a potential upside of 16.11% from the company's current price.

Several other analysts have also recently commented on STZ. The Goldman Sachs Group set a $155.00 target price on Constellation Brands in a report on Wednesday, October 7th. JPMorgan Chase & Co. upped their price target on shares of Constellation Brands from $133.00 to $136.00 and gave the stock a "neutral" rating in a research report on Thursday, October 8th. Citigroup reissued a "negative" rating on shares of Constellation Brands in a report on Wednesday, October 7th. Wells Fargo & Company lowered their price objective on shares of Constellation Brands from $170.00 to $140.00 and set an "overweight" rating for the company in a research report on Monday, October 5th. Finally, Raymond James Financial set a $150.00 target price on shares of Constellation Brands in a research note on Thursday, September 17th. Twelve analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $154.09.

Constellation Brands Stock Performance

NYSE:STZ opened at $137.80 on Wednesday. The stock has a market capitalization of $23.32 billion, a P/E ratio of 12.36, a price-to-earnings-growth ratio of 2.88 and a beta of 0.39. The company has a current ratio of 1.00, a quick ratio of 0.53 and a debt-to-equity ratio of 1.02. Constellation Brands has a 1 year low of $110.60 and a 1 year high of $168.60. The firm has a 50 day moving average of $125.48 and a 200-day moving average of $141.69.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings results on Tuesday, October 6th. The company reported $3.74 EPS for the quarter, topping analysts' consensus estimates of $3.62 by $0.12. Constellation Brands had a return on equity of 24.75% and a net margin of 19.57%. The business had revenue of $2.63 billion for the quarter, compared to analyst estimates of $2.54 billion. During the same period in the prior year, the company earned $3.63 EPS. Constellation Brands's revenue for the quarter was up 6.1% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, sell-side analysts anticipate that Constellation Brands will post 11.85 EPS for the current fiscal year.

Hedge Funds Weigh In On Constellation Brands

Hedge funds have recently added to or reduced their stakes in the company. Hohimer Wealth Management LLC acquired a new stake in shares of Constellation Brands during the third quarter worth about $465,000. University of Texas Texas AM Investment Management Co. grew its position in shares of Constellation Brands by 197.4% in the 3rd quarter. University of Texas Texas AM Investment Management Co. now owns 800 shares of the company's stock valued at $90,000 after purchasing an additional 531 shares during the period. Pictet Asset Management Holding SA grew its position in shares of Constellation Brands by 28.2% in the 3rd quarter. Pictet Asset Management Holding SA now owns 75,546 shares of the company's stock valued at $8,541,000 after purchasing an additional 16,638 shares during the period. Alps Advisors Inc. grew its position in shares of Constellation Brands by 6.8% in the 3rd quarter. Alps Advisors Inc. now owns 3,604 shares of the company's stock valued at $407,000 after purchasing an additional 230 shares during the period. Finally, CenterBook Partners LP bought a new stake in Constellation Brands during the 3rd quarter worth approximately $650,000. Institutional investors own 77.34% of the company's stock.

About Constellation Brands

Constellation Brands, Inc is a beverage alcohol company that develops, produces, markets and distributes beer, wine and spirits. Its beer portfolio includes Modelo Especial, Corona Extra, Corona Light, Pacifico and Victoria, while its wine and spirits brands include Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company, Simi, Ruffino, High West and Casa Noble.

The company's beer business is primarily focused on the United States, where Constellation markets and distributes several leading Mexican beer brands under license from Grupo Modelo.

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