- Constellation Brands (NYSE:STZ), the company behind Corona and Modelo beers, has received a Buy rating from Bank of America Securities and a positive outlook from Morgan Stanley. This comes after the company reported a robust third-quarter performance that exceeded expectations, with an adjusted earnings per share (EPS) of $3.24. The beer segment, in particular, demonstrated strong sales with an 8.2% increase in depletions and a high gross margin of 52.8%, indicating improved profitability.
While the Wine & Spirits division faces a less optimistic forecast, the overall fiscal year 2024 EPS forecast for Constellation Brands remains steady. Analysts are pointing to the company's underappreciated value and attractive valuation, which is currently at 16 times the estimated future EPS. They also highlight the potential for high single-digit revenue growth.
Constellation Brands has revised its fiscal year 2024 profit outlook, setting it at $9.15-$9.35 earnings per share.
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