UBS Group Issues Pessimistic Forecast for Constellation Brands (NYSE:STZ) Stock Price

Key Points

• UBS Group lowered its price target for Constellation Brands from $168 to $145 while maintaining a “buy” rating, implying 23.44% upside from the stock’s $117.46 price. The broader analyst consensus is “hold,” with an average target of $161.90.
• Constellation Brands recently missed quarterly earnings expectations, reporting $3.43 per share versus the $3.70 consensus estimate. Revenue reached $2.43 billion but declined 3.3% year over year.
• The stock is trading near its 52-week low of $116.93, with a market capitalization of approximately $20.06 billion; institutional investors own 77.34% of its shares.

Constellation Brands (NYSE:STZ - Get Free Report) had its target price lowered by stock analysts at UBS Group from $168.00 to $145.00 in a report issued on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the stock. UBS Group's price target would indicate a potential upside of 23.44% from the stock's current price.

STZ has been the topic of several other reports. Needham & Company LLC restated a "buy" rating and set a $185.00 target price on shares of Constellation Brands in a research note on Thursday, July 2nd. JPMorgan Chase & Co. decreased their price objective on shares of Constellation Brands from $169.00 to $165.00 and set a "neutral" rating for the company in a research report on Thursday, July 2nd. Bank of America lowered their target price on shares of Constellation Brands from $152.00 to $145.00 and set an "underperform" rating for the company in a research note on Thursday, July 2nd. Roth Capital restated a "buy" rating and set a $209.00 price target on shares of Constellation Brands in a research note on Thursday, July 2nd. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $185.00 price target on shares of Constellation Brands in a report on Thursday, July 2nd. Twelve research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $161.90.

Constellation Brands Price Performance

Shares of NYSE:STZ opened at $117.46 on Wednesday. The firm has a fifty day moving average price of $129.90 and a 200 day moving average price of $141.17. Constellation Brands has a fifty-two week low of $116.93 and a fifty-two week high of $168.60. The firm has a market cap of $20.06 billion, a price-to-earnings ratio of 11.21, a P/E/G ratio of 2.34 and a beta of 0.41. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.48 and a current ratio of 0.91.

Constellation Brands (NYSE:STZ - Get Free Report) last posted its earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share for the quarter, missing analysts' consensus estimates of $3.70 by ($0.27). Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The business had revenue of $2.43 billion during the quarter, compared to analysts' expectations of $2.39 billion. During the same period last year, the business posted $3.22 earnings per share. The company's revenue for the quarter was down 3.3% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, sell-side analysts expect that Constellation Brands will post 11.84 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Constellation Brands

Several hedge funds have recently bought and sold shares of the stock. MV Capital Management Inc. acquired a new stake in shares of Constellation Brands during the 4th quarter valued at approximately $26,000. Root Financial Partners LLC boosted its position in Constellation Brands by 231.3% during the first quarter. Root Financial Partners LLC now owns 222 shares of the company's stock worth $33,000 after purchasing an additional 155 shares in the last quarter. Cedar Mountain Advisors LLC acquired a new stake in Constellation Brands in the first quarter valued at $33,000. Continuum Advisory LLC acquired a new position in shares of Constellation Brands during the 2nd quarter worth $33,000. Finally, Ascentis Independent Advisors purchased a new stake in shares of Constellation Brands in the 1st quarter worth about $37,000. Hedge funds and other institutional investors own 77.34% of the company's stock.

Constellation Brands Company Profile

Constellation Brands, Inc NYSE: STZ is a beverage alcohol company that produces, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Corona Extra, Modelo Especial, Modelo Negra, Pacifico and Victoria, along with wine brands including Robert Mondavi, The Prisoner, Kim Crawford and Meiomi. Its spirits portfolio includes brands such as Casa Noble tequila and High West whiskey.

The company's beer business is focused primarily on the United States, where Constellation markets and sells Mexican beer brands brewed by its production operations in Mexico.

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