Constellation Brands' (STZ) "Outperform" Rating Reaffirmed at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its “outperform” rating on Constellation Brands and kept a $185 price target, implying about 34% upside from the prior close.
• Analyst views remain mixed overall: the stock now has a consensus rating of Moderate Buy with a consensus price target of $167.89, as several firms recently adjusted their targets and ratings.
• Constellation Brands recently reported Q1 earnings below EPS expectations but revenue above estimates, while reaffirming its FY2027 guidance despite softer consumer demand trends.

Constellation Brands (NYSE:STZ - Get Free Report)'s stock had its "outperform" rating reiterated by stock analysts at Royal Bank Of Canada in a research note issued to investors on Thursday,Benzinga reports. They currently have a $185.00 price target on the stock. Royal Bank Of Canada's price objective indicates a potential upside of 34.12% from the stock's previous close.

Other equities research analysts also recently issued reports about the company. Piper Sandler reissued a "neutral" rating and issued a $160.00 price objective on shares of Constellation Brands in a research note on Wednesday. UBS Group dropped their target price on Constellation Brands from $186.00 to $175.00 and set a "buy" rating on the stock in a report on Wednesday, June 17th. TD Cowen restated a "buy" rating and set a $174.00 price target on shares of Constellation Brands in a report on Wednesday. Jefferies Financial Group set a $147.00 price objective on shares of Constellation Brands in a research report on Thursday. Finally, Sanford C. Bernstein reiterated an "outperform" rating on shares of Constellation Brands in a research note on Wednesday. One research 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 stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $167.89.

Constellation Brands Trading Up 0.8%

Constellation Brands stock opened at $137.94 on Thursday. Constellation Brands has a 12-month low of $126.45 and a 12-month high of $178.13. The company has a debt-to-equity ratio of 1.16, a current ratio of 1.08 and a quick ratio of 0.55. The stock has a market capitalization of $23.75 billion, a PE ratio of 13.05, a price-to-earnings-growth ratio of 4.10 and a beta of 0.39. The firm has a 50 day simple moving average of $145.47 and a 200-day simple moving average of $150.16.

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

Insider Transactions at Constellation Brands

In other Constellation Brands news, EVP James O. Bourdeau sold 4,407 shares of the company's stock in a transaction that occurred 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 of the company's stock, valued at $1,304,773.16. This represents a 32.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 12.20% of the stock is owned by insiders.

Institutional Trading of Constellation Brands

A number of institutional investors and hedge funds have recently modified their holdings of STZ. Brighton Jones LLC lifted its position in Constellation Brands by 23.0% during the 4th quarter. Brighton Jones LLC now owns 1,001 shares of the company's stock worth $221,000 after acquiring an additional 187 shares during the last quarter. Woodline Partners LP acquired a new stake in shares of Constellation Brands in the first quarter valued at about $2,409,000. Cary Street Partners Financial LLC increased its stake in shares of Constellation Brands by 69.9% in the second quarter. Cary Street Partners Financial LLC now owns 1,026 shares of the company's stock worth $167,000 after purchasing an additional 422 shares during the period. Bank of Nova Scotia lifted its position in shares of Constellation Brands by 3.6% during the 2nd quarter. Bank of Nova Scotia now owns 17,347 shares of the company's stock worth $2,822,000 after purchasing an additional 599 shares during the last quarter. Finally, Daiwa Securities Group Inc. lifted its position in shares of Constellation Brands by 5.0% during the 2nd quarter. Daiwa Securities Group Inc. now owns 23,732 shares of the company's stock worth $3,861,000 after purchasing an additional 1,127 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: Constellation Brands beat Q1 earnings and revenue estimates, with beer strength and pricing gains helping offset softer sales trends. Constellation Brands (STZ) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: The company reaffirmed its fiscal 2027 guidance, which reassured investors that management still expects the business to perform despite a tougher consumer backdrop. Constellation Brands Analysts Slash Their Forecasts After Q1 Results
• Neutral Sentiment: Constellation Brands declared a quarterly dividend of $1.03 per share, keeping income investors engaged but not changing the operating outlook. Constellation Brands declares $1.03 dividend
• Neutral Sentiment: Management also pointed to softer volume trends and pressure from higher gas prices and inflation, suggesting consumer demand could remain uneven. Constellation Brands beats quarterly profit estimates on beer demand
• Negative Sentiment: Analysts at Barclays and Morgan Stanley cut price targets, reflecting more cautious views on valuation and near-term upside. Constellation Brands analyst price target changes

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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