02:50 PM EDT, 10/08/2025 (MT Newswires) -- Constellation Brands ( STZ ) shares are likely to stay rangebound until the beverage alcohol firm can gain momentum with its volumes, RBC Capital Markets said in a note Wednesday.

The report said the company reported an overall solid fiscal Q2 quarter given muted expectations and poor investor sentiment.

The note also pointed to challenging beer depletions, weighed down by macro factors, but beer margins were notably stronger despite volume pressure.

"We feel good about the trajectory of beer margins for the year despite volume pressure but understand investors need to see beer volumes improve to get more excited," the report said.

RBC reiterated its outperform rating with a $200 price target.

Price: 144.32, Change: +4.18, Percent Change: +2.98