Brown-Forman downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Eric Serotta downgraded Brown-Forman (BF.B) to Underweight from Equal Weight with a price target of $32, down from $47. The company’s sales and profit growth are likely to “remain muted” amid continued soft U.S. and global spirits demand, structural headwinds to alcohol consumption, tariff risk, and American whiskey oversupply, the analyst tells investors in a research note. The firm says that while the shares are down 41% in the last 12 months, yesterday’s 10% gain on “better than feared” fiscal Q3 results “tilts the risk/reward decidedly negative” in the short-term.