Needham & Company LLC Has Lowered Expectations for Constellation Brands (NYSE:STZ) Stock Price

Constellation Brands (NYSE:STZ) had its price objective reduced by investment analysts at Needham & Company LLC from $185.00 to $150.00 in a report issued on Thursday, Benzinga reports. The brokerage presently has a “buy” rating on the stock. Needham & Company LLC’s target price suggests a potential upside of 26.96% from the stock’s previous close.

STZ has been the subject of several other research reports. JPMorgan Chase & Co. lowered their price target on shares of Constellation Brands from $165.00 to $133.00 and set a “neutral” rating for the company in a report on Friday, September 25th. TD Cowen decreased their price objective on shares of Constellation Brands from $174.00 to $150.00 and set a “buy” rating for the company in a research report on Thursday, September 17th. BNP Paribas Exane decreased 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 report on Monday, September 21st. Weiss Ratings reiterated a “hold (c-)” rating on shares of Constellation Brands in a research note on Friday, July 31st. Finally, BMO Capital Markets reissued an “outperform” rating and issued a $190.00 target price on shares of Constellation Brands in a report on Thursday, July 2nd. Eleven research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $154.86.

Constellation Brands Stock Performance

Shares of STZ opened at $118.15 on Thursday. The stock has a 50-day simple moving average of $126.03 and a 200-day simple moving average of $138.41. 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 stock has a market capitalization of $20.18 billion, a PE ratio of 10.60, a PEG ratio of 2.30 and a beta of 0.44. Constellation Brands has a 1 year low of $110.60 and a 1 year high of $168.60.

Constellation Brands (NYSE:STZ) last released its earnings results on Tuesday, October 6th. The company reported $3.74 earnings per share for the quarter, topping analysts’ consensus estimates of $3.62 by $0.12. The firm had revenue of $2.63 billion for the quarter, compared to analyst estimates of $2.54 billion. Constellation Brands had a net margin of 19.57% and a return on equity of 25.17%. The business’s quarterly revenue was up 6.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.63 earnings per share. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. On average, analysts predict that Constellation Brands will post 11.81 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of STZ. Nykredit A S acquired a new stake in Constellation Brands during the 2nd quarter worth approximately $83,687,000. Van ECK Associates Corp increased its holdings in shares of Constellation Brands by 11.0% in the fourth quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company’s stock valued at $330,728,000 after purchasing an additional 237,073 shares during the period. Diamond Hill Capital Management LLC Investment Advisor acquired a new position in shares of Constellation Brands in the second quarter valued at approximately $31,582,000. Assenagon Asset Management S.A. raised its stake in shares of Constellation Brands by 197.7% during the second quarter. Assenagon Asset Management S.A. now owns 338,172 shares of the company’s stock worth $47,036,000 after purchasing an additional 224,578 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in shares of Constellation Brands by 18.8% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,268,672 shares of the company’s stock worth $175,026,000 after purchasing an additional 200,555 shares during the period. Institutional investors and hedge funds own 77.34% of the company’s stock.

Constellation Brands News Roundup

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

• Positive Sentiment: Q2 results exceeded expectations: Adjusted EPS was $3.74 versus the $3.62 consensus, while revenue increased 6.1% year over year to $2.63 billion, ahead of estimates. Beer sales rose 5%, and wine and spirits revenue jumped 17%. Corona beer maker Constellation Brands tops second-quarter estimates on resilient demand
• Positive Sentiment: Growth initiatives could broaden the portfolio: Constellation acquired spirit-based ready-to-drink brand SpikedAde for $75 million upfront, with up to $278 million in contingent payments, expanding its presence in the fast-growing RTD category. The company also highlighted improving trends in some channels and momentum for Pacifico, Victoria and Modelo Chelada. Constellation Brands Announces Acquisition of Spirit-Based Ready-to-Drink Brand SpikedAde
• Neutral Sentiment: Income support remains attractive: Constellation declared a quarterly dividend of $1.03 per share, equivalent to $4.12 annually and a yield of approximately 3.5%. Strong year-to-date free cash flow also supports shareholder returns, although the company’s balance-sheet liquidity remains relatively tight.
• Negative Sentiment: Beer demand remains the central concern: Modelo Especial depletions declined about 2% and Corona Extra declined about 5%. Analysts questioned whether recent improvement is durable as consumers become more price-sensitive and overall beer demand softens. Modelo owner Constellation is getting creative to bring back beer drinkers as overall demand weakens
• Negative Sentiment: Guidance and analyst caution pressured the stock: Fiscal 2027 EPS guidance of $11.20–$11.90 was viewed as less compelling relative to consensus near $11.74, while Morgan Stanley warned of second-half margin pressure. Goldman Sachs retained a Buy rating but cut its price target to $155, and Bank of America also reduced its target because the beer turnaround remains unproven. Constellation Brands PT Lowered to $155 at Goldman Sachs

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.