Barclays Maintains an 'Underweight' on Brown Forman (BF-B); Accelerating U.S. Spirits Category
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Price: $49.06 +0.16%
Rating Summary:
8 Buy, 15 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
8 Buy, 15 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Barclays maintains an 'Underweight' on Brown Forman (NYSE: BF-B) price target of $70.00.
Barclays analyst says, "Despite a $0.02 EPS miss in Brown-Forman's 1QF12 results, there were a number of rather positive takeaways, including considerably more sanguine management commentary on the prospects for the U.S. spirits business, pricing and the upcoming holiday season. We have the following key takeaways from the earnings release and company conference call."
"The company saw acceleration in the U.S. business, driven by the Jack Daniel's trademark and super-premium brands, and has favorable expectations for the business and the U.S. spirits category, going forward. We believe that this is a rather positive takeaway, not only for BF.B, but also other domestic industry players, notably Fortune Brands (NYSE: FO), Diageo (NYSE: DEO), Constellation Brands (NYSE: STZ) and Pernod Ricard. Management reiterated fiscal 2012 EPS guidance of $3.45-$3.85 and its mid-to-high single-digit operating income growth. We believe that the reiteration was a bit of conservatism early in the year and caution on potential FX benefit."
"Global pricing commentary was quite positive, which we believe augurs well for the upcoming holiday season."
For more ratings news on Brown Forman click here and for the rating history of Brown Forman click here.
Shares of Brown Forman closed at $71.75 yesterday.
Barclays analyst says, "Despite a $0.02 EPS miss in Brown-Forman's 1QF12 results, there were a number of rather positive takeaways, including considerably more sanguine management commentary on the prospects for the U.S. spirits business, pricing and the upcoming holiday season. We have the following key takeaways from the earnings release and company conference call."
"The company saw acceleration in the U.S. business, driven by the Jack Daniel's trademark and super-premium brands, and has favorable expectations for the business and the U.S. spirits category, going forward. We believe that this is a rather positive takeaway, not only for BF.B, but also other domestic industry players, notably Fortune Brands (NYSE: FO), Diageo (NYSE: DEO), Constellation Brands (NYSE: STZ) and Pernod Ricard. Management reiterated fiscal 2012 EPS guidance of $3.45-$3.85 and its mid-to-high single-digit operating income growth. We believe that the reiteration was a bit of conservatism early in the year and caution on potential FX benefit."
"Global pricing commentary was quite positive, which we believe augurs well for the upcoming holiday season."
For more ratings news on Brown Forman click here and for the rating history of Brown Forman click here.
Shares of Brown Forman closed at $71.75 yesterday.
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