Analyst Robert Moskow from TD Cowen maintained a Hold rating on Constellation Brands and decreased the price target to $132.00 from $144.00.
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Robert Moskow has given his Hold rating due to a combination of factors affecting Constellation Brands. One of the primary reasons is the observed decline in retail sales, which has led to a reduction in the company’s beer volume growth estimates for the fiscal year 2026. This decline contradicts the management’s earlier optimism that sales trends might have stabilized, prompting a revision of earnings per share (EPS) estimates downward.
Additionally, the company’s decision to continue expanding its beer production capacity, despite the current volume pressures, reflects a long-term strategy that might not yield immediate returns. Management believes that the current socioeconomic challenges, particularly within the Hispanic community, are temporary. However, this commitment to expansion amidst declining sales has led to concerns about operating margins and profitability, contributing to the Hold rating.
In another report released on November 7, Macquarie also resumed coverage with a Hold rating on the stock with a $153.00 price target.