10:05 AM EDT, 07/02/2025 (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 $35 to $200, on 14.5x our FY 27 (Feb.) EPS estimate, a justified discount to STZ's five-year average forward P/E of 20.3x. We cut our FY 26 adj. EPS view by $0.15 to $12.60 and FY 27's by $0.50 to $13.75. STZ posted May-Q adj. EPS of $3.22 vs. $3.57 (-10%), short of the $3.29 consensus. The miss was due to weaker-than-expected sales and margins, as net sales fell 6% to $2.52B ($40M below consensus) and gross margin contracted 230 bps to 50.4% (90 bps below consensus). Despite the miss, STZ maintained its FY 26 adj. EPS guidance of $12.60-$12.90, a silver lining, in our view. We reiterate our Buy opinion, as we believe STZ's strong FCF, the ongoing market share gains of its imported brands, and the Mexican brewery expansion position the company favorably for future growth. Moreover, its balance sheet provides ample flexibility to navigate near-term headwinds, share repurchases should help boost EPS, and our target is well below the intrinsic value suggested by our DCF valuation.