Constellation Brands’ Price Target Lowered to $157 After 11.4% Drop
STZ•Jefferies lowered Constellation Brands' price target to $157, implying roughly 9.5% upside, after the stock fell 11.4% versus a 3.6% sector gain. Zacks forecasts Q3 EPS of $3.28 while UBS expects $3.12 on a 1% beer depletion decline ahead of June 30 earnings.
1. Jefferies Cuts Price Target
On June 23, Jefferies reduced its price target for Constellation Brands to $157, implying around 9.5% upside from current levels. This move reflects concerns over the company’s near-term performance, particularly in its beer segment.
2. Beer Sales Weigh on Share Performance
Constellation Brands’ shares have dropped 11.4% in recent months, underperforming the consumer staples sector’s 3.6% gain. The decline is driven by softer demand and a 1% drop in beer replenishments to distributors.
3. Divergent Earnings Outlook
Analysts expect mixed results for Q3: Zacks projects EPS of $3.28 year-over-year, while UBS trimmed its estimate to $3.12. Investors will look to the June 30 report for revenue trends and margin guidance.
4. Full-Year EPS Guidance Maintained
Despite short-term headwinds, UBS retains Constellation’s full-year EPS range of $11.20 to $11.90. The company cites strength in its wine and spirits portfolios as offsets to beer segment pressures.
