Constellation Brands (NYSE:STZ) Raised to Buy at Freedom Broker

Constellation Brands (NYSE:STZ) was upgraded by equities research analysts at Freedom Broker from a “hold” rating to a “buy” rating in a research report issued on Thursday, Benzinga reports. The firm currently has a $158.00 target price on the stock, down from their previous target price of $173.00. Freedom Broker’s price target indicates a potential upside of 27.89% from the stock’s current price.

Several other research firms have also recently commented on STZ. Royal Bank Of Canada reduced their target price on Constellation Brands from $185.00 to $182.00 and set an “outperform” rating for the company in a research report on Thursday. Needham & Company LLC decreased their price objective on shares of Constellation Brands from $185.00 to $150.00 and set a “buy” rating on the stock in a research report on Thursday. TD Cowen lowered their target price on shares of Constellation Brands from $174.00 to $150.00 and set a “buy” rating on the stock in a research note on Thursday, September 17th. BNP Paribas Exane dropped their target price on shares of Constellation Brands from $115.00 to $110.00 and set an “underperform” rating for the company in a research report on Monday, September 21st. Finally, Jefferies Financial Group cut their price target on shares of Constellation Brands from $147.00 to $135.00 and set a “hold” rating for the company in a research note on Monday, September 14th. Twelve analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, Constellation Brands currently has a consensus rating of “Hold” and an average price target of $152.95.

Constellation Brands Stock Performance

Shares of NYSE:STZ traded up $5.16 during midday trading on Thursday, reaching $123.55. 3,231,806 shares of the company traded hands, compared to its average volume of 2,266,838. The company has a quick ratio of 0.48, a current ratio of 0.91 and a debt-to-equity ratio of 1.06. Constellation Brands has a 12 month low of $110.60 and a 12 month high of $168.60. The firm has a market capitalization of $21.10 billion, a price-to-earnings ratio of 11.08, a price-to-earnings-growth ratio of 2.30 and a beta of 0.44. The firm’s fifty day moving average price is $126.03 and its two-hundred day moving average price is $138.41.

Constellation Brands (NYSE:STZ) last issued its earnings results on Tuesday, October 6th. The company reported $3.74 EPS for the quarter, topping the consensus estimate of $3.62 by $0.12. Constellation Brands had a return on equity of 25.17% and a net margin of 19.57%.The business had revenue of $2.63 billion during the quarter, compared to the consensus estimate of $2.54 billion. During the same quarter last year, the company earned $3.63 EPS. The firm’s revenue was up 6.1% compared to the same quarter last year. Constellation Brands has set its FY 2027 guidance at 11.200-11.900 EPS. On average, equities analysts expect that Constellation Brands will post 11.81 earnings per share for the current year.

Hedge Funds Weigh In On Constellation Brands

A number of large investors have recently added to or reduced their stakes in the business. Van ECK Associates Corp boosted its position in Constellation Brands by 11.0% during the fourth quarter. Van ECK Associates Corp now owns 2,397,275 shares of the company’s stock valued at $330,728,000 after buying an additional 237,073 shares during the period. Dimensional Fund Advisors LP lifted its stake in shares of Constellation Brands by 5.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,826,652 shares of the company’s stock valued at $274,029,000 after acquiring an additional 88,538 shares during the last quarter. Bank of America Corp DE boosted its holdings in Constellation Brands by 9.5% during the 1st quarter. Bank of America Corp DE now owns 1,403,275 shares of the company’s stock valued at $210,491,000 after acquiring an additional 121,515 shares during the period. Arrowstreet Capital Limited Partnership grew its position in Constellation Brands by 18.8% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,268,672 shares of the company’s stock worth $175,026,000 after acquiring an additional 200,555 shares during the last quarter. Finally, Bank of New York Mellon Corp increased its stake in Constellation Brands by 4.0% in the 1st quarter. Bank of New York Mellon Corp now owns 1,042,651 shares of the company’s stock worth $156,398,000 after purchasing an additional 40,124 shares during the period. Hedge funds and other institutional investors own 77.34% of the company’s stock.

More Constellation Brands News

Here are the key news stories impacting Constellation Brands this week:

• Positive Sentiment: Constellation reported fiscal Q2 revenue of $2.63 billion, up 6.1% year over year and above the $2.54 billion analyst consensus. Comparable EPS of $3.74 also exceeded estimates of $3.62. Beer sales increased 5%, while wine and spirits sales rose 17%. STZ Q3 CY2026 Deep Dive
• Positive Sentiment: Management said September depletion trends improved beyond the Labor Day period, with healthier inventories, stronger marketing and gains from Pacifico, Victoria and Modelo Chelada. This increased investor confidence that fiscal 2027 earnings could approach the high end of the company’s $11.20-$11.90 comparable EPS outlook. September Depletion Improvement
• Positive Sentiment: Constellation agreed to acquire spirit-based ready-to-drink brand SpikedAde for $75 million upfront, with potential additional consideration. The deal expands exposure to faster-growing, convenience-oriented alcohol categories and supports the company’s portfolio diversification. SpikedAde Acquisition
• Positive Sentiment: Cash returns remain supportive: Constellation repurchased approximately $530 million of stock through September and declared a quarterly dividend of $1.03 per share.
• Neutral Sentiment: Analysts remain broadly constructive but lowered targets after the report. Needham cut its target to $150 while retaining a Buy rating, and Morgan Stanley reduced its target to $145 with an Equal Weight rating, reflecting valuation upside but continued execution risks.
• Negative Sentiment: The full-year revenue outlook of roughly $9 billion at the midpoint was below analyst expectations, while management’s comparable EPS guidance remained below the consensus midpoint. Investors also remain concerned about second-half margin pressure from marketing investments and other costs.
• Negative Sentiment: Underlying beer demand is not fully recovered: Modelo Especial depletions declined about 2% and Corona Extra declined about 5%. The durability of the turnaround remains uncertain as consumers seek value in a softer alcohol market.

About Constellation Brands

Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.

The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation’s products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.