Constellation Brands (NYSE:STZ) Receives "Buy" Rating from Needham & Company LLC

Key Points

• Needham & Company LLC reiterated a Buy rating on Constellation Brands and kept a $185 price target, implying about 35.9% upside from the prior close.
• Analyst sentiment remains constructive overall, with MarketBeat showing an average rating of “Moderate Buy” and an average price target of $167.89 across the coverage universe.
• Constellation Brands recently missed EPS estimates in its latest quarter but still posted revenue above expectations, and it also raised FY2027 EPS guidance, signaling confidence in future profitability.

Constellation Brands (NYSE:STZ - Get Free Report)'s stock had its "buy" rating reissued by stock analysts at Needham & Company LLC in a research note issued on Thursday,Benzinga reports. They currently have a $185.00 target price on the stock. Needham & Company LLC's target price points to a potential upside of 35.87% from the company's previous close.

Several other equities analysts have also issued reports on the company. Jefferies Financial Group set a $147.00 price target on Constellation Brands in a research note on Thursday. UBS Group dropped their price objective on Constellation Brands from $186.00 to $175.00 and set a "buy" rating for the company in a research report on Wednesday, June 17th. Citigroup reaffirmed a "buy" rating on shares of Constellation Brands in a research note on Monday, May 18th. JPMorgan Chase & Co. lifted their target price on Constellation Brands from $168.00 to $169.00 and gave the company a "neutral" rating in a research report on Thursday, June 25th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Constellation Brands in a research note on Monday, May 4th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Constellation Brands presently has an average rating of "Moderate Buy" and an average price target of $167.89.

Constellation Brands Stock Performance

NYSE STZ opened at $136.16 on Thursday. The company has a current ratio of 1.08, a quick ratio of 0.55 and a debt-to-equity ratio of 1.16. The firm has a market capitalization of $23.45 billion, a price-to-earnings ratio of 12.99, a P/E/G ratio of 4.10 and a beta of 0.39. The firm's 50 day simple moving average is $145.47 and its 200 day simple moving average is $150.16. Constellation Brands has a 1 year low of $126.45 and a 1 year high of $178.13.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its quarterly earnings data on Tuesday, June 30th. The company reported $3.43 EPS for the quarter, missing the consensus estimate of $3.69 by ($0.26). Constellation Brands had a net margin of 18.87% and a return on equity of 25.97%. The firm had revenue of $2.43 billion for the quarter, compared to analyst estimates of $2.39 billion. During the same quarter in the prior year, the firm earned $3.22 earnings per share. The firm's revenue for the quarter was down 3.3% 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 expect that Constellation Brands will post 11.78 earnings per share for the current fiscal year.

Insider Activity at Constellation Brands

In other news, EVP James O. Bourdeau sold 4,407 shares of the stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total value of $631,258.68. Following the completion of the transaction, the executive vice president directly owned 9,109 shares in the company, valued at approximately $1,304,773.16. This represents a 32.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 12.20% of the company's stock.

Institutional Investors Weigh In On Constellation Brands

Hedge funds and other institutional investors have recently bought and sold shares of the company. MV Capital Management Inc. acquired a new stake in shares of Constellation Brands during the fourth quarter valued at about $26,000. Stance Capital LLC acquired a new position in shares of Constellation Brands in the third quarter valued at approximately $26,000. Strive Financial Group LLC bought a new position in Constellation Brands in the 4th quarter valued at approximately $27,000. GoalVest Advisory LLC bought a new position in Constellation Brands in the 4th quarter valued at approximately $28,000. Finally, Elyxium Wealth LLC acquired a new stake in Constellation Brands during the 4th quarter worth approximately $33,000. 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: Constellation Brands beat quarterly earnings estimates and revenue also came in above Wall Street forecasts, helped by solid beer performance and pricing gains. Constellation Brands' Q1 Earnings Beat, Sales Top on Beer Strength
• Positive Sentiment: The company raised its FY2027 EPS guidance, signaling management confidence in profitability despite a tougher sales backdrop. Constellation Brands Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Constellation Brands declared a $1.03 quarterly dividend, reinforcing cash return support for shareholders. Constellation Brands declares $1.03 dividend
• Positive Sentiment: Piper Sandler reaffirmed a neutral rating but set a $160 price target, implying upside from recent trading levels. Benzinga note on Piper Sandler rating

Constellation Brands Company Profile

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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