04:18 PM EDT, 05/30/2024 (MT Newswires) -- Brown-Forman's (BF.B) fiscal Q4 expectations are low amid stagnant growth and guidance downgrades, Wedbush said Thursday in a report.

"Despite a current attractive valuation, [Brown-Forman] is almost surely looking at another year of below algorithm performance in FY25, which combined with negative sentiment around inventories and the broad slowdown in spirits, will likely result in an overhang on the multiple until trends start to improve," Wedbush said.

The company is likely to project another year of below-average performance with modest organic revenue growth and slight operating income improvement, the report said.

Brown-Forman is scheduled to report fiscal Q4 earnings on Wednesday. Wedbush's EPS estimate for the quarter is $0.43, 1 cent above consensus.

Wedbush lowered its price target on Brown-Forman to $54 from $57 and maintained a neutral rating.

Brown-Forman shares closed up 0.1% in Thursday trading.

Price: 44.27, Change: +0.05, Percent Change: +0.11