Constellation Brands depletions should improve, says Roth Capital

Roth Capital keeps a Buy rating and $209 price target on Constellation Brands (STZ) after its Q4 results and outlook. The company’s initial 2027 guidance was below consensus but this outlook should not be relied upon as the firm expects fundamentals to accelerate and the management’s ranges to prove “unnecessarily low” rather than conservative. With the World Cup, tax refunds, a ban on intoxicating hemp, and lapping disruptions to Hispanic consumer habits, Constellation Brands Beer depletions should improve, outpace guidance, and justify a re-rating, the analyst tells investors in a research note.