TD Cowen Reiterates Hold Rating on Constellation Brands (STZ)

TD Cowen analyst Robert Moskow reiterated a Hold rating and $180.00 price target on Constellation Brands (NYSE: STZ).

The analyst comments "We lower our FY26 EPS to $12.62, the lower end of their $12.60-$12.80 guide, mainly from lowering our beer assumptions as we now model for FY26 beer operating margins to be down 20 bps, in line with the impact management expects from a 50% tariff on aluminum. We also lower our beer growth assumptions in FY27 to 2.6% from volume +1% and price/mix of 1.6%. We maintain our PT at $180, which ascribes a 13x P/E on our FY27E EPS of $13.71, in line with the current valuation. While the stock looks cheap optically compared to its 5-year average of 19x, we think it will remain range-bound until there is more evidence of a recovery in the brands' core Hispanic consumer base and visibility to the 2-4% medium-term algo."

For an analyst ratings summary and ratings history on Constellation Brands click here. For more ratings news on Constellation Brands click here.

Shares of Constellation Brands closed at $172.32 yesterday.

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