Brown-Forman Corp (BF) PT Lowered to $25 at BofA Securities following Q3

BofA Securities analyst Andrea Pistacchi lowered the price target on Brown-Forman Corp (NYSE: BF) to $25.00 (from $26.50) while maintaining a Underperform rating.

The analyst commented, "Q3 results were better than expected, with organic sales c+1% (however ahead of depletions of c-2%), operating income flat organically and a material beat on $ operating income and EPS. Management reiterated the full-year guidance of sales and operating income to decline low single digits. In summary, despite the more difficult environment, the year is playing out no worse than expected for Brown-Forman (unlike for some of its peers), with a relatively resilient performance in the US (sales -1% at the 9-months), supported by the Blackberry launch and continued strong growth in Emerging Markets and Travel Retail offsetting declines in Developed Intl. Cash generation is improving, and the balance sheet remains very solid. That said, (1) we still believe that FY26 operating profit guidance could be optimistic, and (2) the main focus of results was the cautious outlook for gross margin."

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