Constellation Brands (NYSE:STZ) Stock Price Target Lowered at Morgan Stanley

Constellation Brands (NYSE:STZ) had its price target dropped by Morgan Stanley from $158.00 to $145.00 in a report released on Thursday, Benzinga reports. The firm currently has an “equal weight” rating on the stock. Morgan Stanley’s price target suggests a potential upside of 22.73% from the company’s current price.

A number of other equities research analysts have also recently issued reports on the stock. JPMorgan Chase & Co. dropped their target price on shares of Constellation Brands from $165.00 to $133.00 and set a “neutral” rating on the stock in a report on Friday, September 25th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Constellation Brands in a report on Friday, July 31st. BMO Capital Markets reissued an “outperform” rating and set a $190.00 price target on shares of Constellation Brands in a research report on Thursday, July 2nd. TD Cowen reduced their target price on Constellation Brands from $174.00 to $150.00 and set a “buy” rating for the company in a research note on Thursday, September 17th. Finally, Needham & Company LLC cut their price target on Constellation Brands from $185.00 to $150.00 and set a “buy” rating for the company in a report on Thursday. Eleven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $154.86.

Constellation Brands Price Performance

NYSE:STZ opened at $118.15 on Thursday. The stock has a market capitalization of $20.18 billion, a PE ratio of 10.60, a P/E/G ratio of 2.30 and a beta of 0.44. Constellation Brands has a 1-year low of $110.60 and a 1-year high of $168.60. The firm has a fifty day simple moving average of $126.03 and a 200 day simple moving average of $138.41. The company has a current ratio of 0.91, a quick ratio of 0.48 and a debt-to-equity ratio of 1.06.

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

Institutional Investors Weigh In On Constellation Brands

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Van ECK Associates Corp boosted its stake in shares of Constellation Brands by 11.0% in the fourth quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company’s stock valued at $330,728,000 after buying an additional 237,073 shares during the period. Dimensional Fund Advisors LP raised its holdings in Constellation Brands by 5.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,826,652 shares of the company’s stock valued at $274,029,000 after acquiring an additional 88,538 shares in the last quarter. Bank of America Corp DE raised its holdings in Constellation Brands by 9.5% in the 1st 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 in the last quarter. Arrowstreet Capital Limited Partnership lifted 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 lifted its position 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 valued at $156,398,000 after acquiring an additional 40,124 shares during the period. 77.34% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Constellation Brands

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

• Positive Sentiment: Q2 results exceeded expectations: Adjusted EPS was $3.74 versus the $3.62 consensus, while revenue increased 6.1% year over year to $2.63 billion, ahead of estimates. Beer sales rose 5%, and wine and spirits revenue jumped 17%. Corona beer maker Constellation Brands tops second-quarter estimates on resilient demand
• Positive Sentiment: Growth initiatives could broaden the portfolio: Constellation acquired spirit-based ready-to-drink brand SpikedAde for $75 million upfront, with up to $278 million in contingent payments, expanding its presence in the fast-growing RTD category. The company also highlighted improving trends in some channels and momentum for Pacifico, Victoria and Modelo Chelada. Constellation Brands Announces Acquisition of Spirit-Based Ready-to-Drink Brand SpikedAde
• Neutral Sentiment: Income support remains attractive: Constellation declared a quarterly dividend of $1.03 per share, equivalent to $4.12 annually and a yield of approximately 3.5%. Strong year-to-date free cash flow also supports shareholder returns, although the company’s balance-sheet liquidity remains relatively tight.
• Negative Sentiment: Beer demand remains the central concern: Modelo Especial depletions declined about 2% and Corona Extra declined about 5%. Analysts questioned whether recent improvement is durable as consumers become more price-sensitive and overall beer demand softens. Modelo owner Constellation is getting creative to bring back beer drinkers as overall demand weakens
• Negative Sentiment: Guidance and analyst caution pressured the stock: Fiscal 2027 EPS guidance of $11.20–$11.90 was viewed as less compelling relative to consensus near $11.74, while Morgan Stanley warned of second-half margin pressure. Goldman Sachs retained a Buy rating but cut its price target to $155, and Bank of America also reduced its target because the beer turnaround remains unproven. Constellation Brands PT Lowered to $155 at Goldman Sachs

Constellation Brands Company Profile

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.