Constellation Brands Faces Downward Growth Revision Amid Beer Sales Decline and Margin Pressures

TD Cowen analyst Robert Moskow has maintained their neutral stance on STZ stock, giving a Hold rating today.

Robert Moskow has given his Hold rating due to a combination of factors impacting Constellation Brands. The company has revised its fiscal year 2026 organic growth outlook downward, primarily due to weaker than expected beer sales. This adjustment in guidance was more significant than anticipated, highlighting ongoing challenges in the beer segment that were previously noted.
Moreover, the company is experiencing reduced consumer demand, particularly among Hispanic consumers, which has led to a decrease in purchase frequency and spending per trip. Additionally, there are pressures on EBIT margins due to volume deleverage and increased tariffs on aluminum cans. Despite these challenges, management remains optimistic about distribution growth, citing gains in national accounts and regional markets. However, the overall cautious outlook and the persistence of these issues justify the Hold rating.

In another report released today, Deutsche Bank also maintained a Hold rating on the stock with a $158.00 price target.