12:27 PM EST, 01/07/2025 (MT Newswires) -- Constellation Brands ( STZ ) shares could remain "range-bound" due to uncertainties related to the impacts of potential tariffs and new immigration controls from the administration of President Donald Trump, RBC Capital Markets said in a Tuesday note.

"In the near term we acknowledge beer fundamentals have taken a back seat to the uncertainty around the new administration's potential policies and the derivative implications on the topline and margins, ranging from tariffs to a more aggressive stance on immigration," said RBC.

The investment firm also noted that Constellation Brands' ( STZ ) shares "are already pricing in a lot of bad news" given the stock's recent underperformance.

According to RBC, the company's beer positioning remains strong even amid the ongoing category weakness. Constellation Brands ( STZ ) can also compound its beer top line at 7% to 9% over the next three year through share gains and tailwinds from innovation, distribution, and demographic tailwinds RBC added.

RBC Capital Markets has an outperform rating on Constellation Brands ( STZ ), with a $308 price target.

Price: 221.74, Change: -1.19, Percent Change: -0.53