In a report released yesterday, Peter Galbo from Bank of America Securities reiterated a Sell rating on Constellation Brands, with a price target of $142.00.
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Peter Galbo has given his Sell rating due to a combination of factors impacting Constellation Brands’ financial outlook. The company has revised its fiscal year 2026 earnings projections downward, with a notable reduction in expected adjusted earnings per share. This adjustment is primarily driven by a forecasted decline in organic sales, particularly in the beer segment, which is anticipated to experience a decrease in shipments due to inventory adjustments at distributors.
Additionally, Constellation Brands is facing challenges with operating income, which is expected to decline more sharply than previously predicted. The beer segment, in particular, is experiencing faster declines in operating profits compared to sales, attributed to operating deleverage. Furthermore, the company is dealing with a weaker demand environment, especially among Hispanic consumers, and a challenging economic backdrop. These factors have led to a reduction in the price objective for the stock, reinforcing the Sell rating.
According to TipRanks, Galbo is an analyst with an average return of -0.6% and a 45.11% success rate. Galbo covers the Consumer Defensive sector, focusing on stocks such as Primo Brands, Conagra Brands, and McCormick & Company.