Hold Rating for Constellation Brands Amid Persistent Sales Declines and Economic Pressures

In a report released today, Robert Moskow from TD Cowen maintained a Hold rating on Constellation Brands, with a price target of $144.00.

Robert Moskow’s rating is based on several factors impacting Constellation Brands’ performance. Despite a better-than-expected second quarter, the company continues to experience declines, particularly in depletions and sales among its core Hispanic consumer base. Although there is cautious optimism from management about trends stabilizing, the data suggests that sales declines are persisting at a steady rate.
Additionally, while there was some improvement in sales in certain markets with high Hispanic populations, other areas like California remain challenging. The company’s beer segment saw a decline in organic growth, although it was slightly better than anticipated. The ongoing economic pressure on core Hispanic consumers and expected further depletion declines in the coming periods contribute to the Hold rating, as these factors indicate potential challenges ahead for Constellation Brands.

According to TipRanks, Moskow is a 3-star analyst with an average return of 2.8% and a 45.17% success rate. Moskow covers the Consumer Defensive sector, focusing on stocks such as Kraft Heinz, Clorox, and McCormick & Company.

In another report released today, Barclays also maintained a Hold rating on the stock with a $147.00 price target.