Constellation Brands (NYSE:STZ) Given Outperform Rating at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed an Outperform on Constellation Brands and set a $185 price target, implying roughly an 11.1% upside from the recent share price.
• Constellation beat Q4 estimates with $1.90 EPS and boosted shareholder returns (dividend raised to $1.03 and ~$1.6B in buybacks), but revenue was down 11.3% YoY and management issued soft FY2027 guidance ($11.20–$11.90) while withdrawing FY2028 outlook.
• Analyst sentiment is mixed but overall positive — the stock carries a Moderate Buy consensus with an average price target of $176.14 across analysts.

Constellation Brands (NYSE:STZ - Get Free Report)'s stock had its "outperform" rating reaffirmed by analysts at Royal Bank Of Canada in a note issued to investors on Friday,Benzinga reports. They presently have a $185.00 price target on the stock. Royal Bank Of Canada's price objective suggests a potential upside of 11.11% from the stock's current price.

Other research analysts have also issued reports about the company. Citigroup raised Constellation Brands from a "neutral" rating to a "buy" rating and upped their price target for the company from $155.00 to $175.00 in a research report on Wednesday, March 18th. Sanford C. Bernstein upped their price target on Constellation Brands from $195.00 to $197.00 and gave the stock an "outperform" rating in a research note on Friday, January 9th. Weiss Ratings upgraded Constellation Brands from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, February 5th. JPMorgan Chase & Co. increased their target price on Constellation Brands from $155.00 to $163.00 and gave the company a "neutral" rating in a research note on Wednesday, April 1st. Finally, BMO Capital Markets restated an "outperform" rating and set a $190.00 target price on shares of Constellation Brands in a research note on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $176.14.

Constellation Brands Stock Performance

STZ stock traded up $3.44 during trading on Friday, reaching $166.51. 259,116 shares of the company's stock were exchanged, compared to its average volume of 2,395,618. The company has a quick ratio of 0.70, a current ratio of 1.34 and a debt-to-equity ratio of 1.29. The firm has a market cap of $28.87 billion, a PE ratio of 17.44, a P/E/G ratio of 0.42 and a beta of 1.75. The company's fifty day moving average price is $154.56 and its 200-day moving average price is $145.38. Constellation Brands has a 1-year low of $126.45 and a 1-year high of $196.91.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its quarterly earnings data on Wednesday, April 8th. The company reported $1.90 earnings per share for the quarter, beating the consensus estimate of $1.74 by $0.16. The business had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.84 billion. Constellation Brands had a return on equity of 26.70% and a net margin of 17.29%.The company's revenue was down 11.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.63 earnings per share. On average, research analysts expect that Constellation Brands will post 13.5 EPS for the current fiscal year.

Hedge Funds Weigh In On Constellation Brands

A number of hedge funds have recently modified their holdings of the stock. Hsbc Holdings PLC raised its holdings in shares of Constellation Brands by 7.9% in the 4th quarter. Hsbc Holdings PLC now owns 269,319 shares of the company's stock worth $37,202,000 after buying an additional 19,730 shares in the last quarter. Strategic Investment Solutions Inc. IL raised its holdings in shares of Constellation Brands by 23.0% in the 4th quarter. Strategic Investment Solutions Inc. IL now owns 1,653 shares of the company's stock worth $228,000 after buying an additional 309 shares in the last quarter. Anchor Investment Management LLC raised its holdings in shares of Constellation Brands by 5.1% in the 4th quarter. Anchor Investment Management LLC now owns 2,670 shares of the company's stock worth $368,000 after buying an additional 130 shares in the last quarter. MidFirst Bank acquired a new position in shares of Constellation Brands in the 4th quarter worth approximately $729,000. Finally, MV Capital Management Inc. acquired a new position in shares of Constellation Brands in the 4th quarter worth approximately $26,000. 77.34% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Constellation Brands

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

• Positive Sentiment: Q4 beat and stronger cash returns: Constellation reported Q4 EPS of $1.90 (above estimates) and revenue that topped expectations; management highlighted substantial shareholder returns (buybacks + raised dividend), which lifted investor sentiment. Zacks: Constellation Brands Soars on Upbeat Q4 Earnings
• Positive Sentiment: Dividend increase and buybacks: Management raised the quarterly dividend to $1.03 and returned ~$1.6B to shareholders in FY2026 — a near‑term income/total‑return catalyst that supports the stock. QuiverQuant: STZ jumps as investors digest cash returns
• Positive Sentiment: Analyst support: Needham raised its price target and reaffirmed a Buy, and Wells Fargo lifted its target — analyst upgrades/target bumps helped momentum into the session. Benzinga: Needham raises price target
• Neutral Sentiment: Leadership transition / management messaging: Incoming CEO Nicholas Fink joined the earnings call briefly and management stressed improving trends in key Hispanic consumer segments — this calms some execution concerns but is early to change fundamentals. GlobeNewswire: Constellation FY26 results
• Neutral Sentiment: Mixed analyst reactions: While some shops upped targets, others (Morgan Stanley, Barclays) flagged caution / moved to Hold — the analyst tone is mixed, limiting consensus upside near term. Globe and Mail: Morgan Stanley Hold
• Negative Sentiment: Soft FY2027 guidance / withdrawn FY2028 outlook: Management gave FY2027 EPS guidance of $11.20–$11.90, below Street expectations, and withdrew longer‑term FY2028 guidance — this post‑earnings outlook is the main reason some investors remain cautious. Blockonomi: FY27 outlook disappoints
• Negative Sentiment: Weak demand in wine & spirits and consumer down‑trading: Revenue was down year‑over‑year (wine/spirits weakness offset beer gains), and management noted shoppers trading down — a structural demand risk that could pressure margins and growth. Reuters: Sales drop, beer demand steady

About Constellation Brands

Constellation Brands, Inc is a leading producer and marketer of beer, wine and spirits, with operations spanning production, importation, marketing and distribution. The company's beverage portfolio includes a range of premium and mainstream wines and spirits alongside major imported beer brands; in the U.S. market Constellation is widely known for its role in bringing Mexican imports such as Corona and Modelo to American consumers. Constellation supplies retail, on‑premise and foodservice channels and supports its brands with national sales and marketing platforms and supply‑chain capabilities.

The company traces its roots to the Canandaigua Wine Company, founded by Marvin Sands in 1945, and evolved through organic growth and acquisition into a diversified beverage company.

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