In a report released today, Gerald Pascarelli from Needham maintained a Buy rating on Constellation Brands (STZ – Research Report), with a price target of $215.00.
Gerald Pascarelli has given his Buy rating due to a combination of factors that suggest potential for Constellation Brands to improve its market position despite current challenges. Although the company is facing pressure on its core Hispanic consumer base and has experienced a slowdown in trends, the low sentiment surrounding the upcoming quarterly performance provides an opportunity for the company to reset expectations and demonstrate its capability in managing these challenges.
Furthermore, Pascarelli has adjusted the fiscal year 2026 estimates to reflect a more cautious outlook on beer revenue, projecting a 3.8% growth and an EPS of $13.99. Despite the lowered earnings expectations and target price, the strategic measures being taken by Constellation Brands to address incremental headwinds contribute to the Buy rating, as they indicate a proactive approach to overcoming current market difficulties.
In another report released today, Barclays also maintained a Buy rating on the stock with a $203.00 price target.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of STZ in relation to earlier this year.