Constellation Brands (NYSE:STZ) Stock Rating Upgraded by Freedom Broker

Constellation Brands (NYSE:STZ) was upgraded by Freedom Broker from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday, Benzinga reports. The firm presently has a $158.00 price objective on the stock, down from their prior price objective of $173.00. Freedom Broker’s price objective points to a potential upside of 27.89% from the company’s previous close.

Several other research firms also recently commented on STZ. Deutsche Bank Aktiengesellschaft dropped their target price on Constellation Brands from $136.00 to $127.00 and set a “hold” rating for the company in a research report on Thursday. Piper Sandler set a $125.00 target price on shares of Constellation Brands in a research report on Thursday. TD Cowen reduced their target price on shares of Constellation Brands from $174.00 to $150.00 and set a “buy” rating on the stock in a report on Thursday, September 17th. Needham & Company LLC dropped their price target on shares of Constellation Brands from $185.00 to $150.00 and set a “buy” rating for the company in a research note on Thursday. Finally, Freedom Capital lowered shares of Constellation Brands from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 1st. Twelve investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $152.95.

Constellation Brands Price Performance

STZ traded up $5.16 on Thursday, hitting $123.55. 3,231,806 shares of the stock were exchanged, compared to its average volume of 2,266,838. The business has a 50-day moving average of $126.03 and a two-hundred day moving average of $138.41. The firm has a market capitalization of $21.10 billion, a price-to-earnings ratio of 11.08, a PEG ratio of 2.30 and a beta of 0.44. Constellation Brands has a 12 month low of $110.60 and a 12 month high of $168.60. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.91 and a quick ratio of 0.48.

Constellation Brands (NYSE:STZ) last posted its quarterly earnings results on Tuesday, October 6th. The company reported $3.74 EPS for the quarter, topping analysts’ consensus estimates of $3.62 by $0.12. Constellation Brands had a return on equity of 25.17% and a net margin of 19.57%.The company had revenue of $2.63 billion during the quarter, compared to analysts’ expectations of $2.54 billion. During the same quarter in the previous year, the firm earned $3.63 EPS. Constellation Brands’s revenue was up 6.1% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. Sell-side analysts forecast that Constellation Brands will post 11.81 EPS for the current fiscal year.

Institutional Trading of Constellation Brands

A number of institutional investors and hedge funds have recently modified their holdings of STZ. Van ECK Associates Corp grew its stake in Constellation Brands by 11.0% in the 4th quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company’s stock valued at $330,728,000 after purchasing an additional 237,073 shares during the period. Dimensional Fund Advisors LP raised its position in Constellation Brands by 5.1% in the first quarter. Dimensional Fund Advisors LP now owns 1,826,652 shares of the company’s stock worth $274,029,000 after acquiring an additional 88,538 shares during the period. Bank of America Corp DE boosted its stake in Constellation Brands by 9.5% in the first quarter. Bank of America Corp DE now owns 1,403,275 shares of the company’s stock valued at $210,491,000 after acquiring an additional 121,515 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of Constellation Brands by 18.8% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,268,672 shares of the company’s stock valued at $175,026,000 after acquiring an additional 200,555 shares during the period. Finally, Bank of New York Mellon Corp increased its stake in shares of Constellation Brands by 4.0% during the 1st quarter. Bank of New York Mellon Corp now owns 1,042,651 shares of the company’s stock worth $156,398,000 after purchasing an additional 40,124 shares during the last quarter. 77.34% of the stock is owned by hedge funds and other institutional investors.

Key Constellation Brands News

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

• Positive Sentiment: Constellation reported fiscal Q2 revenue of $2.63 billion, up 6.1% year over year and above the $2.54 billion analyst consensus. Comparable EPS of $3.74 also exceeded estimates of $3.62. Beer sales increased 5%, while wine and spirits sales rose 17%. STZ Q3 CY2026 Deep Dive
• Positive Sentiment: Management said September depletion trends improved beyond the Labor Day period, with healthier inventories, stronger marketing and gains from Pacifico, Victoria and Modelo Chelada. This increased investor confidence that fiscal 2027 earnings could approach the high end of the company’s $11.20-$11.90 comparable EPS outlook. September Depletion Improvement
• Positive Sentiment: Constellation agreed to acquire spirit-based ready-to-drink brand SpikedAde for $75 million upfront, with potential additional consideration. The deal expands exposure to faster-growing, convenience-oriented alcohol categories and supports the company’s portfolio diversification. SpikedAde Acquisition
• Positive Sentiment: Cash returns remain supportive: Constellation repurchased approximately $530 million of stock through September and declared a quarterly dividend of $1.03 per share.
• Neutral Sentiment: Analysts remain broadly constructive but lowered targets after the report. Needham cut its target to $150 while retaining a Buy rating, and Morgan Stanley reduced its target to $145 with an Equal Weight rating, reflecting valuation upside but continued execution risks.
• Negative Sentiment: The full-year revenue outlook of roughly $9 billion at the midpoint was below analyst expectations, while management’s comparable EPS guidance remained below the consensus midpoint. Investors also remain concerned about second-half margin pressure from marketing investments and other costs.
• Negative Sentiment: Underlying beer demand is not fully recovered: Modelo Especial depletions declined about 2% and Corona Extra declined about 5%. The durability of the turnaround remains uncertain as consumers seek value in a softer alcohol market.

About Constellation Brands

Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.

The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation’s products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.