How Analysts Rate Constellation Brands’ Stock



Analyst recommendations

As of December 23, 61% or 11 out of 18 analysts had a “buy” recommendation for Constellation Brands’ stock. Five analysts had a “hold” rating and two analysts had a “sell” recommendation. On November 16, RBC Capital reiterated a “buy” rating for Constellation Brands’ stock and set a 12-month price target of $183. Earlier, Bank of America/Merrill Lynch downgraded Constellation Brands’ stock on November 9 to “underperform” from “buy” and lowered the price target to $150 from $195.

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Analyst ratings for peers

As of December 23, the analyst ratings for Constellation Brands’ peers were:

  • Anheuser-Busch InBev (BUD): buy 63%, hold 37%, sell 0%
  • Molson Coors Brewing (TAP): buy 80%, hold 20%, sell 0%
  • Brown-Forman (BF.B): buy 25%, hold 56%, sell 19%

Consensus “buy” rating

The “buy” rating from the majority of analysts covering Constellation Brands’ stock is backed by the company’s consistent performance in recent quarters. We discussed the company’s sales and earnings in parts 1 and 5 of this series. The growing demand for the company’s Mexican beer brands and the company’s strong positioning in the premium wine category give it a competitive advantage.

As we discussed in the previous parts of this series, the company is enhancing its production capacity to meet the strong demand for its imported beer portfolio. The company is also strengthening its overall portfolio by focusing on high-margin, premium products across the beer, wine and spirits category.

12-month price target         

As of December 23, the 12-month average price target for Constellation Brands’ stock was $180.06. This price target reflects an upside potential of 19.4% compared to the closing price of $150.79 on December 23.

We’ll discuss the company’s valuation in the concluding part of this series.


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