Cheers to Growth: Constellation Brands Gets Upgrade, Analyst Bullish on Beer Sales
Portfolio Pulse from Shivani Kumaresan
Constellation Brands Inc (NYSE:STZ) was upgraded from Hold to Buy by Argus Research analyst John Staszak, with a price target of $306. The upgrade follows a 7% increase in comparable sales to $2.14 billion in fiscal 4Q24, beating estimates. Beer revenue rose by 11% to over $1.70 billion. FY25 EPS estimates were raised to $14.20, with an FY26 estimate of $15.30. The company announced an 11% dividend increase to $0.89 per share. Despite risks like high debt and competition, the analyst views STZ's valuation as attractive, trading at 18.6-times FY25 EPS estimates, below the sector average.
April 15, 2024 | 5:57 pm
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Constellation Brands was upgraded to Buy by Argus Research with a $306 price target, following strong fiscal 4Q24 sales and an optimistic EPS outlook for FY25 and FY26. The company also announced an 11% dividend increase.
The upgrade by Argus Research, based on strong sales performance and positive EPS outlook, along with a dividend increase, signals a bullish sentiment for STZ. These factors are likely to positively impact investor perception and STZ's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100