09:40 AM EDT, 04/11/2024 (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 increase our 12-month price target by $25 to $270, based on a FY 26 (Feb.) P/E of 18.0x, a discount to its five-year mean forward P/E of 21.7x. We increase our adjusted EPS estimates to $13.70 from $13.30 for FY 25 and to $15.00 from $14.75 for FY 26. STZ posted Feb-Q adjusted EPS of $2.26 vs. $1.98 (+14%), well ahead of the $2.10 consensus. The beat was driven by a stronger-than-expected top line and lower tax rate, as net sales rose 7% to $2.14B ($40M above consensus) and gross margin expanded 50 bps to 48.6% (240 bps below consensus). STZ introduced FY 25 adjusted EPS guidance of $13.50-$13.80, ahead of the current consensus of $13.43 and implying 12%-14% growth over the $12.06 earned in 2023. While the beat and stronger-than-expected guidance were positives, we have concerns about the sustainability of its recent sales growth, which has been driven by consumers switching from domestic to imported beer brands, such as Modelo, Corona, and Pacifico. We raise our target, but remain at a Hold on valuation.