Needham analyst Gerald Pascarelli has maintained their bullish stance on STZ stock, giving a Buy rating today.
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Gerald Pascarelli has given his Buy rating due to a combination of factors despite facing a challenging start to the fiscal year for Constellation Brands. The company is expected to report lower beer revenue and operating margins, falling below the guidance provided for the year. Recent trends indicate a decline in volumes, with no significant improvement in consumer sentiment, particularly among the Hispanic demographic, compounded by adverse weather conditions.
Despite these challenges, Pascarelli maintains a Buy rating, suggesting a long-term positive outlook for Constellation Brands. The lowered earnings per share (EPS) estimates for the upcoming quarters and fiscal years reflect the current difficulties, yet the stock’s price target is set at $195, which represents a discount compared to its historical average. This suggests potential for future growth and recovery, making it an attractive investment opportunity in the long run.
In another report released today, UBS also maintained a Buy rating on the stock with a $195.00 price target.
Based on the recent corporate insider activity of 45 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.