Royal Bank Of Canada Reaffirms Outperform Rating for Constellation Brands (NYSE:STZ)

Constellation Brands (NYSE:STZ)‘s stock had its “outperform” rating reissued by equities researchers at Royal Bank Of Canada in a report issued on Friday, Marketbeat reports. They currently have a $185.00 price target on the stock. Royal Bank Of Canada’s price objective would suggest a potential upside of 59.22% from the company’s previous close.

Several other equities research analysts have also recently weighed in on the company. Deutsche Bank Aktiengesellschaft dropped their target price on Constellation Brands from $150.00 to $136.00 and set a “hold” rating for the company in a report on Friday, September 11th. BMO Capital Markets restated an “outperform” rating and issued a $190.00 target price on shares of Constellation Brands in a report on Thursday, July 2nd. Piper Sandler reiterated a “neutral” rating and set a $160.00 price target on shares of Constellation Brands in a report on Wednesday, July 1st. Barclays dropped their price target on shares of Constellation Brands from $132.00 to $122.00 and set an “equal weight” rating for the company in a research report on Tuesday, September 22nd. Finally, BNP Paribas Exane lowered their price objective on shares of Constellation Brands from $115.00 to $110.00 and set an “underperform” rating for the company in a research note on Monday, September 21st. Ten investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, Constellation Brands has a consensus rating of “Hold” and an average price target of $157.40.

Constellation Brands Price Performance

STZ traded up $0.53 during midday trading on Friday, hitting $116.20. The stock had a trading volume of 1,818,188 shares, compared to its average volume of 2,236,775. Constellation Brands has a 1 year low of $110.60 and a 1 year high of $168.60. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.48 and a current ratio of 0.91. The business has a fifty day moving average of $126.30 and a 200 day moving average of $138.65. The company has a market cap of $19.84 billion, a P/E ratio of 11.04, a price-to-earnings-growth ratio of 2.25 and a beta of 1.75.

Constellation Brands (NYSE:STZ) last announced its quarterly earnings data on Tuesday, October 6th. The company reported $3.74 earnings per share for the quarter, topping analysts’ consensus estimates of $3.55 by $0.19. Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The firm had revenue of $2.63 billion during the quarter, compared to analyst estimates of $2.54 billion. During the same period in the previous year, the business posted $3.63 EPS. The business’s quarterly revenue was up 6.1% on a year-over-year basis. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. As a group, equities analysts forecast that Constellation Brands will post 11.81 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Constellation Brands

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Capital International Investors raised its holdings in Constellation Brands by 48.5% in the 4th quarter. Capital International Investors now owns 6,442,600 shares of the company’s stock worth $888,930,000 after acquiring an additional 2,105,546 shares during the last quarter. Nykredit A S bought a new stake in Constellation Brands in the 2nd quarter worth about $83,687,000. Capital World Investors raised its position in Constellation Brands by 8.3% in the 4th quarter. Capital World Investors now owns 7,238,575 shares of the company’s stock worth $998,740,000 after buying an additional 553,974 shares during the last quarter. Van ECK Associates Corp raised its position in Constellation Brands by 11.0% in the 4th quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company’s stock worth $330,728,000 after buying an additional 237,073 shares during the last quarter. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new position in Constellation Brands during the 2nd quarter valued at about $31,582,000. Hedge funds and other institutional investors own 77.34% of the company’s stock.

Key Headlines Impacting Constellation Brands

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Constellation Brands reported fiscal second-quarter adjusted EPS of $3.74, above the $3.55 analyst consensus, while revenue rose 6.1% year over year to $2.63 billion, exceeding expectations of $2.54 billion. Beer sales increased 5%, and wine and spirits sales rose 17%. Reuters earnings report
• Positive Sentiment: The company acquired SpikedAde for $75 million at closing, with potential contingent payments of up to $278 million, expanding its presence in the growing spirit-based ready-to-drink beverage category. SpikedAde acquisition announcement
• Positive Sentiment: STZ declared a quarterly dividend of $1.03 per share, or $4.12 annually, representing an indicated yield of roughly 3.5%. Wells Fargo also maintained an overweight rating despite cutting its price target to $140 from $170. Wells Fargo price target update

Constellation Brands Company Profile

Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.

The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation’s products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.