Needham & Company LLC Cuts Constellation Brands (NYSE:STZ) Price Target to $150.00

Key Points

• Needham & Company cut Constellation Brands’ price target from $185 to $150 but maintained a “buy” rating, implying approximately 27% upside from the prior close.
• Constellation exceeded quarterly expectations, reporting adjusted EPS of $3.74 versus $3.62 expected and revenue of $2.63 billion, up 6.1% year over year.
• Beer demand remains a concern: Modelo Especial and Corona Extra volumes declined, prompting several analysts to lower their targets; the broader analyst consensus is “hold” with a $154.86 price target.

Constellation Brands (NYSE:STZ - Get Free Report) had its target price lowered by equities research analysts at Needham & Company LLC from $185.00 to $150.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the stock. Needham & Company LLC's target price points to a potential upside of 26.96% from the stock's previous close.

STZ has been the topic of several other reports. Citigroup restated a "negative" rating on shares of Constellation Brands in a report on Wednesday. Roth Capital reiterated a "buy" rating and set a $209.00 price target on shares of Constellation Brands in a research report on Thursday, July 2nd. BMO Capital Markets reissued an "outperform" rating and issued a $190.00 price target on shares of Constellation Brands in a research note on Thursday, July 2nd. Royal Bank Of Canada restated an "outperform" rating and issued a $185.00 price objective on shares of Constellation Brands in a report on Friday, October 2nd. Finally, 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. Eleven analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $154.86.

Constellation Brands Trading Up 2.1%

Shares of Constellation Brands stock opened at $118.15 on Thursday. The stock has a 50 day moving average of $126.03 and a 200 day moving average of $138.41. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.48 and a current ratio of 0.91. The firm has a market capitalization of $20.18 billion, a price-to-earnings ratio of 10.60, a PEG ratio of 2.30 and a beta of 0.44. Constellation Brands has a fifty-two week low of $110.60 and a fifty-two week high of $168.60.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its earnings results on Tuesday, October 6th. The company reported $3.74 EPS for the quarter, beating analysts' consensus estimates of $3.62 by $0.12. Constellation Brands had a return on equity of 25.17% and a net margin of 19.57%.The company had revenue of $2.63 billion for the quarter, compared to the consensus estimate of $2.54 billion. During the same quarter in the previous year, the business earned $3.63 earnings per share. The company'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, research analysts predict that Constellation Brands will post 11.81 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Van ECK Associates Corp grew its holdings in shares of Constellation Brands by 11.0% in the fourth quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company's stock valued at $330,728,000 after purchasing an additional 237,073 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in Constellation Brands by 5.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,826,652 shares of the company's stock worth $274,029,000 after buying an additional 88,538 shares in the last quarter. Bank of America Corp DE lifted its holdings in Constellation Brands by 9.5% during the 1st quarter. Bank of America Corp DE now owns 1,403,275 shares of the company's stock worth $210,491,000 after buying an additional 121,515 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its position in Constellation Brands by 18.8% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,268,672 shares of the company's stock valued at $175,026,000 after buying an additional 200,555 shares during the period. Finally, Bank of New York Mellon Corp boosted its position in Constellation Brands by 4.0% in the 1st quarter. Bank of New York Mellon Corp now owns 1,042,651 shares of the company's stock valued at $156,398,000 after buying an additional 40,124 shares during the period. Hedge funds and other institutional investors own 77.34% of the company's stock.

Key Headlines Impacting Constellation Brands

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Q2 results exceeded expectations: Adjusted EPS was $3.74 versus the $3.62 consensus, while revenue increased 6.1% year over year to $2.63 billion, ahead of estimates. Beer sales rose 5%, and wine and spirits revenue jumped 17%. Corona beer maker Constellation Brands tops second-quarter estimates on resilient demand
• Positive Sentiment: Growth initiatives could broaden the portfolio: Constellation acquired spirit-based ready-to-drink brand SpikedAde for $75 million upfront, with up to $278 million in contingent payments, expanding its presence in the fast-growing RTD category. The company also highlighted improving trends in some channels and momentum for Pacifico, Victoria and Modelo Chelada. Constellation Brands Announces Acquisition of Spirit-Based Ready-to-Drink Brand SpikedAde
• Neutral Sentiment: Income support remains attractive: Constellation declared a quarterly dividend of $1.03 per share, equivalent to $4.12 annually and a yield of approximately 3.5%. Strong year-to-date free cash flow also supports shareholder returns, although the company’s balance-sheet liquidity remains relatively tight.
• Negative Sentiment: Beer demand remains the central concern: Modelo Especial depletions declined about 2% and Corona Extra declined about 5%. Analysts questioned whether recent improvement is durable as consumers become more price-sensitive and overall beer demand softens. Modelo owner Constellation is getting creative to bring back beer drinkers as overall demand weakens
• Negative Sentiment: Guidance and analyst caution pressured the stock: Fiscal 2027 EPS guidance of $11.20–$11.90 was viewed as less compelling relative to consensus near $11.74, while Morgan Stanley warned of second-half margin pressure. Goldman Sachs retained a Buy rating but cut its price target to $155, and Bank of America also reduced its target because the beer turnaround remains unproven. Constellation Brands PT Lowered to $155 at Goldman Sachs

Constellation Brands Company Profile

Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.

The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation's products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.

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