Constellation Brands price target raised to $182 from $180 at BofA

BofA raised the firm’s price target on Constellation Brands (STZ) to $182 from $180 and keeps a Neutral rating on the shares following Q1 results. Given the Q1 EPS beat, the firm is raising its FY26 EPS estimate from $12.66 to $12.75. BofA’s revised EPS forecast assumes beer sales grow at the low end of the company’s outlook and operating profit grows slightly below midpoint of up 0%-2% outlook. At 13x BofA values shares of Constellation Brands at discount versus its five-year average and believes a discount is justified given that the beer business is currently facing multiple challenges, the firm told investors.