Wells Fargo analyst Christopher Carey has maintained their bullish stance on STZ stock, giving a Buy rating yesterday.
Christopher Carey has given his Buy rating due to a combination of factors that suggest a positive outlook for Constellation Brands. The company’s fourth-quarter guidance for fiscal year 2026 appears more favorable than initially feared, as it accounts for the divestiture of mainstream wine and all tariffs. This adjustment in medium-term targets is seen as a positive move, leaving room for potential upside.
Moreover, Constellation Brands has recalibrated its medium-term expectations, projecting beer sales growth of 2-4% for fiscal years 2027 and 2028, with stable or slightly increasing operating margins. The company’s ability to maintain best-in-class operating margins, even with minimal volume growth, supports this optimistic outlook. Additionally, the expected earnings per share for fiscal year 2028 is approximately $14.30, which implies a valuation of around 12.5 times the fiscal year 2028 EPS, further justifying the Buy rating.
In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $225.00 price target.
STZ’s price has also changed moderately for the past six months – from $240.420 to $183.400, which is a -23.72% drop .