Constellation Brands: Jefferies upgrades stock

Published: 2025-07-07 08:32:11 ET STZ

Published on 07/07/2025 at 08:32

Jefferies has upgraded its recommendation on Constellation Brands from 'hold' to 'buy', with a target price increased from $194 to $205, judging the stock too cheap, trading at a P/E multiple of 12.5x, which it believes should rise to 15x.The broker is reassuring after the weak Q1 results, believing that there is no brand problem and that while Hispanics are drinking less beer, for reasons that have been widely discussed, this will not be the case forever.The forecasts imply that negative trends will turn positive, that wine will become profitable again... and that the basis for comparison will improve at an accelerating pace. A solid balance sheet gives them time, it adds.Copyright (c) 2025 CercleFinance.com. All rights reserved.The information and analyses published by Cercle Finance are provided solely as a decision-making aid for investors. Cercle Finance cannot be held liable, directly or indirectly, for the use of such information and analyses by readers. Anyone who is not an expert in the field is advised to consult a professional advisor before investing. This information is provided for informational purposes only and does not constitute an offer to sell or a solicitation to buy.