Analyst Robert Moskow of TD Cowen maintained a Hold rating on Constellation Brands, retaining the price target of $180.00.
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Robert Moskow’s rating is based on a combination of factors influencing Constellation Brands’ market position. The company is making strides in expanding its beer distribution, particularly in regions with lower Hispanic populations, and is diversifying its product offerings in terms of pack sizes and price points. However, the competitive landscape is intensifying as Anheuser-Busch InBev (ABI) is making significant investments in the U.S. market, which could challenge Constellation’s efforts to secure shelf space.
Constellation has shown progress towards its distribution targets set during the 2023 Analyst Day, achieving significant growth in total distribution points, particularly in the Midwest. Yet, the growth has been uneven, with Modelo Especial not meeting its initial growth expectations. Looking forward, Constellation plans to shift its focus towards other brands like Pacifico and expand in regions with lower Hispanic indices. Despite these strategic moves, the competitive pressure from ABI’s recent market gains poses a potential risk, justifying a Hold rating as the company navigates these challenges.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $188.00 price target.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of STZ in relation to earlier this year.