12:37 PM EDT, 08/26/2024 (MT Newswires) -- Constellation Brands' ( STZ ) earnings per share for fiscal Q2 and fiscal 2025 may fall below consensus, based on the data collected so far, Morgan Stanley said in a note Monday.

"[Constellation Brands' ( STZ )] volumes in scanner data have been weaker than expected quarter to date, with the convenience channel particularly soft as noted by other beverage companies, reflecting macro pressure on low to middle income consumers," the investment firm said.

The macro environment affecting beer sale is expected to linger and will probably impact full-year earnings as well, Morgan Stanley said, and a lack of investor interest will not help the cause.

The investment bank cut its EPS forecast for the beverage company to $4.03 from $4.14 for fiscal Q2 and to $13.52 from $13.71 for fiscal 2025, lower than the consensus of $4.10 and $13.72, respectively.

Beer shipments are expected to drop to 5.0% from 6.5% and depletions to drop to 3.9% from 5.5%.

Morgan Stanley lowered its price target for Constellation to $280 from $305 with an overweight rating.

Price: 243.95, Change: -1.23, Percent Change: -0.50