Analysts slash targets after Constellation Brands Q1 beat
Constellation Brands reported better-than-expected first-quarter results with EPS of $3.43 and revenue of $2.43 billion. The company affirmed its fiscal year adjusted EPS guidance of $11.20 to $11.90. Following the announcement, Morgan Stanley and Barclays lowered their price targets to $158 and $139 respectively, while Needham maintained a Buy rating with a $185 target.
*this image is generated using AI for illustrative purposes only.
Constellation Brands Inc. reported first-quarter earnings of $3.43 per share, beating the consensus estimate of $3.21, while revenue of $2.43 billion surpassed the Street view of $2.39 billion. CEO Nicholas Fink highlighted opportunities to grow leading brands by focusing on consumer relevance. The company affirmed its fiscal year adjusted EPS guidance of $11.20 to $11.90, compared to the analyst estimate of $11.75. Shares rose 0.1% to $136.95 in pre-market trading.
Following the earnings announcement, several analysts revised their price targets. Morgan Stanley analyst Dara Mohsenian maintained an Equal-Weight rating while lowering the price target to $158 from $183. Barclays analyst Lauren Lieberman also kept an Equal-Weight rating, reducing the price target to $139 from $170. Needham analyst Gerald Pascarelli reiterated a Buy rating with a price target of $185.
The varied endorsements signal differing views on the company's future growth trajectory. The $158 target from Morgan Stanley provides a new baseline, contrasting with the lower expectations from Barclays and the higher outlook from Needham.
| Analyst | Firm | Rating | Price Target |
|---|---|---|---|
| Dara Mohsenian | Morgan Stanley | Equal-Weight | $158 |
| Lauren Lieberman | Barclays | Equal-Weight | $139 |
| Gerald Pascarelli | Needham | Buy | $185 |
How will Constellation Brands' strategy to enhance consumer relevance impact its market share in the competitive beverage industry?
What factors are driving the significant divergence in price targets among analysts following the earnings beat?
Will the company's affirmed fiscal year guidance be sufficient to sustain investor confidence amid changing consumer preferences?
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