Several Wall Street firms raised their price targets on Constellation Brands (NYSE:STZ) following the company’s reported better-than-expected Q1 results on Friday.
JPMorgan raised its price target on the company to $276.00 from $273.00 while maintaining an Overweight rating. Deutsche Bank raised the price target to $234.00 from $231.00 and Truist Securities raised it to $240.00 from $220.00, both maintaining their Hold rating. Roth/MKM raised the price target to $284.00 from $270.00 while maintaining a Buy rating.
BMO Capital raised its price target on the company to $290.00 from $265.00 and maintained an Outperform rating, noting that Q1 EPS of $3.04 exceeded the consensus estimate of $2.93 as stronger Beer performance and lower Corporate expense more than offset softer Wine & Spirits.
BMO continues to view the company’s shares positively as Beer momentum continues to support an attractive multiyear growth outlook and potential guidance upside, while shares still trade at a discount to history.
Wells Fargo raised its price target to $280.00 from $275.00 while maintaining an Overweight rating. The firm highlighted that Beer gross margins have sequentially declined each quarter since November 2021. “The May qtr was the first sequential relief, +150bps q/q, the first up qtr in nearly 2 yrs, driving a beat vs Street, and allowing for STZ to still beat operating profit despite higher than expected marketing spending,” said the firm.