Brown-Forman initiatives ‘thoughtful,’ not ‘a knee jerk reaction,’ says Barclays

After Brown-Forman (BF.A) (BF.B) announced several strategic initiatives, including updates to the executive leadership team, a simplified commercial structure, a 12% workforce reduction, and the closure of the Louisville cooperage, Barclays tells investors that these are “thoughtful, long-term oriented decisions” made to support the growth of the evolved portfolio, not “a knee jerk reaction to any recent, short-term industry trends.” Recent headlines have raised alarm about U.S. alcohol growth prospects, not to mention whiskey-specific headlines about industry oversupply, but the firm does not see risk to large players nor the whiskey category as a whole, says the analyst, who has an Overweight rating and $51 price target on Brown-Forman shares.