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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.
Oct 7, 2025 9:04 AM

11:50 AM EDT, 10/07/2025 (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 $10 to $175, based on a 2027 P/E of 13.7x, a steep but justified discount to STZ's 10-year average forward P/E of 21.6x. We maintain our FY 26 adjusted EPS estimate of $11.50 for FY 26 but lower FY 27 to $12.75 from $13.10. Following a stronger-than-expected quarter, we are maintaining our Buy but lowering our price target on STZ. In our view, while the demand-related headwinds facing the company are well known, STZ's balance sheet and free cash flow generation provide ample flexibility to navigate these challenges and ongoing share repurchases should help boost EPS. Additionally, STZ's margin performance was much better than expected considering top-line headwinds, as management appears to be doing an excellent job considering the challenging fundamental backdrop. In short, we like the stock's risk/reward potential and current valuation levels, and with the company having already lowered FY 26 guidance in September, we think the odds of another guidance cut are low.

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