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Wall Street analysts defended Constellation Brands (NYSE:STZ) on Wednesday after the company reported a mixed FQ1 earnings report. Rochester, New York-based Constellation Brands (STZ) saw its core beer brands, including Modelo Especial and Pacifico, put in another strong quarter, but the wines and spirits business saw a decline amid consumer pressures.
Goldman Sachs analyst Bonnie Herzog said the firm continues to view STZ guidance as conservative, given the strength of the company’s underlying business and visibility on delivering on management growth objectives. The firm reiterated a Buy rating on the beverage stock. Goldman Sachs’ 12-month price target on STZ of $300 is based on an equal-weighted EV/EBITDA of 15.4X and P/E of 19.7X, both of which are based on the firm’s CY25 estimates.
Citi was also positive on the report. “Given the negative sentiment heading into the quarter on the beer scanner data deceleration, we believe the beer topline beat and guidance reiteration should drive a positive reaction today,” updated analyst Filippo Falorni.
Shares of Constellation Brands (STZ) were down 3.31% at 1:30 p.m. The beverage stock only trades about 1% above where it did a year ago, despite strong market share gains in the U.S. for some key beer brands.