Brown Forman (BF-B) PT Lowered to $38 at TD Cowen as 'Leadership Changes & Workforce Reduction Signal Extended Slowdown'

TD Cowen analyst Robert Moskow lowered the price target on Brown Forman (NYSE: BF-B) to $38.00 (from $50.00) while maintaining a Hold rating.

The analyst commented: "Leadership Changes & Workforce Reduction Signal Extended Slowdown. BFB announced exec leadership changes, a 12% workforce reduction, and the closure of its Louisville cooperage. The moves are expected to deliver $70-80M in annualized cost savings, some of which BFB will reinvest for growth. We view these moves as further evidence that the downturn in spirits demand remains challenging with no clear signs of an inflection. No update to FY25 guidance.

We lower our PT to $38, which reflects a 20.3x multiple on our forward 12- month EPS estimate. This represents a steep 13x turn discount to BFB's five-year average NTM P/E multiple of 33.3x. We believe the discount is justified by persistently sluggish trends for BFB and the industry, along with incremental risk to U.S. per capita alcohol consumption presented by regulatory scrutiny (Surgeon General warning, MAHA, etc.)."

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