In a report released today, Andrew Strelzik from BMO Capital maintained a Buy rating on Constellation Brands (STZ – Research Report), with a price target of $215.00.
Andrew Strelzik has given his Buy rating due to a combination of factors that highlight Constellation Brands’ strategic positioning and future growth potential. Despite recent challenges, such as a softer consumer environment and tariff impacts, the company has demonstrated resilience with its FY4Q25 earnings surpassing expectations. This was achieved through improved Beer margins, stronger Wine performance, and reduced corporate expenses.
Moreover, the company’s strategic divestiture of mainstream wine brands for approximately $900 million is seen as a positive move, concentrating its portfolio in the premium segment, which is expected to enhance growth over time. Strelzik also notes that the slower growth in Beer sales is attributed to broader socioeconomic factors rather than a decline in brand strength, suggesting potential for growth acceleration as the consumer environment stabilizes. Additionally, the shift from capital expenditure to share buybacks is anticipated to positively impact the company’s valuation moving forward.
In another report released yesterday, Goldman Sachs also reiterated a Buy rating on the stock with a $260.00 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.