Constellation Brands' (STZ) Buy Rating Reiterated at Needham & Company LLC

Key Points

• Needham & Company LLC reiterated its Buy rating on Constellation Brands and kept a $185 price target, implying about 28% upside from the current share price.
• Other analysts remain mixed but generally constructive: JPMorgan and UBS adjusted their targets, while the overall consensus rating on STZ is still Moderate Buy with an average target of $173.84.
• Constellation Brands recently posted better-than-expected quarterly earnings and revenue, though sales were still down year over year; the stock traded around $144.27, below both its 50-day and 200-day averages.

Constellation Brands (NYSE:STZ - Get Free Report)'s stock had its "buy" rating reiterated by stock analysts at Needham & Company LLC in a research report issued on Friday,Benzinga reports. They presently have a $185.00 price objective on the stock. Needham & Company LLC's price target suggests a potential upside of 28.24% from the company's current price.

Several other brokerages also recently commented on STZ. JPMorgan Chase & Co. boosted their target price on Constellation Brands from $168.00 to $169.00 and gave the stock a "neutral" rating in a report on Thursday. Citigroup reaffirmed a "buy" rating on shares of Constellation Brands in a report on Monday, May 18th. UBS Group cut 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. Piper Sandler boosted their price objective on Constellation Brands from $146.00 to $160.00 and gave the stock a "neutral" rating in a research note on Friday, April 10th. Finally, Deutsche Bank Aktiengesellschaft raised their target price on Constellation Brands from $154.00 to $155.00 and gave the company a "hold" rating in a research note on Friday, April 10th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $173.84.

Constellation Brands Trading Up 0.9%

Shares of Constellation Brands stock opened at $144.27 on Friday. The stock has a market capitalization of $24.84 billion, a P/E ratio of 15.04, a price-to-earnings-growth ratio of 4.20 and a beta of 0.39. The company has a quick ratio of 0.55, a current ratio of 1.08 and a debt-to-equity ratio of 1.16. The company has a 50-day simple moving average of $147.23 and a 200 day simple moving average of $150.32. Constellation Brands has a 12-month low of $126.45 and a 12-month high of $178.13.

Constellation Brands (NYSE:STZ - Get Free Report) last released its quarterly earnings results on Wednesday, April 8th. The company reported $1.90 EPS for the quarter, beating analysts' consensus estimates of $1.71 by $0.19. The firm had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.84 billion. Constellation Brands had a net margin of 17.29% and a return on equity of 26.18%. The company's revenue for the quarter was down 11.3% compared to the same quarter last year. During the same period in the previous year, the business earned $2.63 earnings per share. Research analysts expect that Constellation Brands will post 11.84 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 business's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $143.24, for a total transaction of $631,258.68. Following the completion of the sale, the executive vice president owned 9,109 shares in the company, valued at $1,304,773.16. The trade was a 32.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 12.20% of the company's stock.

Institutional Trading of Constellation Brands

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Capital World Investors boosted its stake in shares of Constellation Brands by 8.3% in the 4th quarter. Capital World Investors now owns 7,238,575 shares of the company's stock valued at $998,740,000 after purchasing an additional 553,974 shares during the last quarter. State Street Corp raised its stake in shares of Constellation Brands by 5.0% during the fourth quarter. State Street Corp now owns 6,911,369 shares of the company's stock worth $953,492,000 after buying an additional 329,337 shares during the last quarter. Capital International Investors lifted its holdings in Constellation Brands by 48.5% in the fourth quarter. Capital International Investors now owns 6,442,600 shares of the company's stock valued at $888,930,000 after buying an additional 2,105,546 shares during the period. Wellington Management Group LLP lifted its holdings in Constellation Brands by 14.0% in the fourth quarter. Wellington Management Group LLP now owns 6,018,653 shares of the company's stock valued at $830,333,000 after buying an additional 739,393 shares during the period. Finally, Geode Capital Management LLC boosted its stake in Constellation Brands by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 3,739,549 shares of the company's stock valued at $513,871,000 after acquiring an additional 54,184 shares during the last quarter. 77.34% of the stock is currently owned by institutional investors and hedge funds.

More Constellation Brands News

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

• Positive Sentiment: JPMorgan raised its price target on Constellation Brands (STZ) to $169 from $168, reinforcing a neutral-to-slightly-positive stance and signaling some upside from current levels.
• Positive Sentiment: Multiple previews ahead of STZ’s Q1 FY27 results point to expected earnings growth, with analysts highlighting strength in the company’s beer segment and premium brand portfolio.
• Positive Sentiment: Wall Street estimates and earnings-preview coverage suggest investors are looking for another solid quarter, especially if Constellation can show stable key metrics and continued premiumization trends. Article Title
• Neutral Sentiment: Several articles framed the upcoming report as balanced: earnings are expected to grow, but cost pressures could offset some of the benefit, keeping the near-term setup mixed. Article Title
• Negative Sentiment: The preview pieces also noted risks from higher costs and potential pressure on margins, which could limit upside if demand or profitability comes in softer than expected.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.