JPMorgan downgraded Brown-Forman (BF.B) to Underweight from Neutral with a price target of $23, down from $27, after the company terminated its merger talks with Pernod Ricard. With less strategic fit, potentially more burdensome regulatory process, and likely less control versus a Pernod Ricard deal, a Brown takeover by Sazerac has a lower probability, the analyst tells investors in a research note. JPMorgan believes the focus will turn back to Brown-Forman’s fundamentals and limited earnings growth.
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