Needham lowered the firm’s price target on Constellation Brands (STZ) to $195 from $215 and keeps a Buy rating on the shares. The firm is expecting a challenged start to the year for the company ahead of its Q1 results next week, forecasting beer revenue and operating margin to be running below the low-end of full year guidance and believes that there is potential downside to current Street estimates for the quarter, the analyst tells investors in a research note. Over the past three months, volumes have worsened sequentially, there has been no meaningful improvement in sentiment for the Hispanic consumer, and the weather has been awful, the firm added.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on STZ:
- Long-Term Growth Potential for Constellation Brands Despite Short-Term Challenges
- Constellation Brands price target lowered to $195 from $205 at UBS
- Constellation Brands price target lowered to $196 from $210 at Wells Fargo
- Positive Outlook for Constellation Brands Amid Recovery and Valuation Opportunities
- STZ, BF.B, DEO: U.S. Wine Industry Is in ‘Crisis’ as Exports to Canada and China Collapse