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Research Alert: CFRA Maintains Buy Opinion On Shares Of Constellation Brands Inc.
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Research Alert: CFRA Maintains Buy Opinion On Shares Of Constellation Brands Inc.
Sep 2, 2025 11:36 AM

02:15 PM EDT, 09/02/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $15 to $185, based on a FY 27 (Feb.) P/E of 14.1x, a justified discount to STZ's 10-year mean forward P/E of 21.7x, which we believe is justified by demand-related headwinds facing brewers and lower near-term free cash flow from increased capex. We lower our adjusted EPS estimates to $11.50 from $12.60 for FY 26 and to $13.10 from $13.75 for FY 27. STZ lowered its FY 26 adjusted EPS guidance to $11.30-$11.60 from $12.60-$12.90 (current consensus is $12.47), citing weak consumer demand as the company now expects Beer segment net sales to decline by 2%-4% in FY 26 versus growth of 0%-3% previously. We consider the earnings warnings disappointing, although it is not necessarily a surprise for those who have been tracking recent retail sales data. We remain at Buy, as STZ remains an intermediate-term growth story (FY 29 and beyond). The company continues to take market share in the U.S. and expected FY 26 free cash flow of $1.3B-$1.4B should help provide funding for buybacks.

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