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Summary

  • Constellation Brands got a thumbs up from brokers, with most of them increasing target price on the stock, after the company released its earnings report for Q1 FY24.
  • The mean recommendation rating on Constellation is 2 and the mean consensus price target is US$ 271.55 as on July 5, 2023.
  • Constellation is a supplier of multi-category alcohol, with its portfolio including trademark Mexican beer brands such as Corona and Modelo.

Analysts upgrade Constellation Brands to a ‘Buy’ as the company reported its Q1 FY24 earnings on June 30, 2023. Alongside a rating upgrade, Constellation also saw an upward revision in its price target  . The consensus price target on STZ is US$ 271.55, which is 9.73% higher than its closing price on Monday, July 5, 2023.

The mean recommendation rating on Constellation is 2, on a scale of one to five. Here, one represents a ‘Strong Buy’ rating while five represents a ‘Strong Sell’ rating.

Data on EODHD/Others suggests that a majority of thirteen analysts have given the stock a ‘Buy’ rating, while five analysts have given it a ‘Strong Buy’ rating. Meanwhile, six analysts recommend holding the stock and none of the analysts have given a ‘Sell’ or ‘Strong Sell’ rating on the stock.

STZ Price Chart; Image Source: STZ EODHD/Others

STZ closed at US$ 247.47 on Monday, July 3, 2023, which marks a YTD increase of 6.21% in the stock price. The stock hit its 52-week high of US$ 261.32 late last year on December 2, 2022.

Constellation reports a 6% increase in net sales for Q1 FY24

Constellation is a supplier of multi-category alcohol, with its portfolio including trademark Mexican beer brands such as Corona and Modelo. Most of Constellation’s products are manufactured abroad and are then imported.

For the first quarter for fiscal 2024, Constellation reported net sales of US$ 2.51 billion, which marked a 6% increase over the previous corresponding period. Gross profit stood at US$ 1.25 billion for Q1 FY24, flat compared to Q1 FY23.

Meanwhile, the operating income for Q1 FY24 was 6% lower at US$ 764.7 million. Among all its product segments, Constellation saw an 11% y-o-y increase in beer sales to US$ 2.098 billion in Q1 FY24. The company expects a 7% to 9% increase in its beer net sales for the full fiscal year 2024.

Brokers bullish on STZ

As per data available on EODHD/Others, many equity analysts have upgraded their price targets on Constellation. These include BMO Capital markets, UBS Group and TD Cowen.

BMO Capital Markets upped its price target on STZ from US$ 263 to US$ 290 on Monday, July 3, 2023. UBS Group also increased its price target on STZ to US$ 280 from its previous target of US$ 267.

Image source: ©2023 Kalkine®; Data source: EODHD/Others

Meanwhile, TD Cowen increased its price target on STZ to US$ 220 and Truist Financial boosted its price target on STZ to US$ 240. JP Morgan also increased its price target from US$ 273 to US$276 on July 3, 2023. Wedblush maintained an ‘outperform’ rating on the stock while its price target was US$ 255.