Morgan Stanley Has Lowered Expectations for Constellation Brands (NYSE:STZ) Stock Price

Key Points

• Morgan Stanley cut its price target on Constellation Brands from $183 to $158 and kept an equal weight rating, though that still implies about 16% upside from the current share price.
• The stock has been under pressure after the company missed EPS estimates in its latest quarterly results, even though revenue came in slightly above forecasts.
• Analyst sentiment remains mixed overall: MarketBeat says STZ has a Moderate Buy consensus, with an average price target of $167.89.

Constellation Brands (NYSE:STZ - Get Free Report) had its target price decreased by equities research analysts at Morgan Stanley from $183.00 to $158.00 in a report released on Thursday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 16.04% from the stock's current price.

Several other analysts have also recently issued reports on the company. Sanford C. Bernstein reiterated an "outperform" rating on shares of Constellation Brands in a research report on Wednesday. Deutsche Bank Aktiengesellschaft lifted 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. Jefferies Financial Group set a $147.00 price target on Constellation Brands in a research note on Thursday. UBS Group dropped their price target on Constellation Brands from $186.00 to $175.00 and set a "buy" rating for the company in a research note on Wednesday, June 17th. Finally, Barclays increased their price objective on shares of Constellation Brands from $151.00 to $170.00 and gave the company an "equal weight" rating in a report on Friday, April 10th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $167.89.

Constellation Brands Stock Down 2.1%

STZ opened at $136.16 on Thursday. The stock has a market cap of $23.45 billion, a price-to-earnings ratio of 12.99, a price-to-earnings-growth ratio of 4.10 and a beta of 0.39. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.55 and a current ratio of 1.08. The firm's fifty day moving average is $145.47 and its 200 day moving average is $150.16. Constellation Brands has a fifty-two week low of $126.45 and a fifty-two week high of $178.13.

Constellation Brands (NYSE:STZ - Get Free Report) last issued its quarterly 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). The business had revenue of $2.43 billion during the quarter, compared to analysts' expectations of $2.39 billion. Constellation Brands had a return on equity of 25.97% and a net margin of 18.87%.The company's quarterly revenue was down 3.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.22 EPS. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. On average, sell-side analysts forecast that Constellation Brands will post 11.78 earnings per share for the current fiscal year.

Insider Activity

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

Hedge Funds Weigh In On Constellation Brands

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in STZ. MV Capital Management Inc. purchased a new position in Constellation Brands during the 4th quarter valued at approximately $26,000. Stance Capital LLC purchased a new stake in shares of Constellation Brands during the 3rd quarter worth approximately $26,000. Strive Financial Group LLC purchased a new stake in shares of Constellation Brands during the 4th quarter worth approximately $27,000. GoalVest Advisory LLC bought a new position in shares of Constellation Brands during the 4th quarter valued at approximately $28,000. Finally, Cedar Mountain Advisors LLC bought a new position in shares of Constellation Brands during the 1st quarter valued at approximately $33,000. 77.34% of the stock is owned by institutional investors.

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

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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