Constellation Brands (NYSE:STZ) is scheduled to release its first quarter Fiscal 2024 results on June 30, before the market opens. Remarkably, nine analysts have reaffirmed a Buy rating on STZ stock ahead of the company’s earnings report. Also, several analysts raised their price targets confirming their bullish outlook for the stock.
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The company engages in the production, marketing, and distribution of beer, wine, and spirits across the U.S.
It’s worth mentioning that during the quarter, Constellation’s Modelo Especial overtook Anheuser-Busch InBev’s (NYSE:BUD) Bud Light from its position as America’s top-selling beer. This indicates that the beverage witnessed strong demand in the quarter, which might reflect higher sales.
Furthermore, the growing demand for beer, the launch of a new light beer, and an improved marketing focus might have helped offset weakness in the Wine and Spirits business.
Here’s What Analysts Expect from STZ’s Q1 Results
Overall, Wall Street expects Constellation to post adjusted earnings of $2.83 per share in Q1 compared with the prior-year period’s figure of $2.66 per share. Meanwhile, revenue expectations are pegged at $2.47 billion, representing a year-over-year jump of 4.7%.
Jefferies analyst Kevin Grundy increased his price target on STZ stock to $300 (21% upside potential) from $293 while maintaining a Buy rating. Grundy sees Constellation as a long-term investment. Also, the analyst’s estimates are more optimistic compared to the consensus for STZ’s Q1 results, as he expects the company to report 9.5% organic sales growth along with EPS of $2.95.
Furthermore, Wells Fargo analyst Christopher Carey raised his price target on Constellation to $275 (11% upside) from $260 on the grounds that the company is in a healthier state, possesses areas of strength, and has a clear path to improvement.
Similarly, Citi analyst Filippo Falorni lifted his price target on Constellation stock to $280 (13.2% upside) from $265 and maintained a Buy rating. Falorni expects the company to beat consensus estimates for the quarter. This outlook is based on a strong rebound in scanner data and positive comments from management during the quarter.
Lastly, in a research note to investors on June 15, JPMorgan analyst Andrea Faria Teixeira raised her price target on Constellation to $273 (10.3% upside) from $257 and kept a Buy rating on the stock. The analyst finds the company well-positioned to surpass Fiscal Q1 estimates.
What is the Consensus Price Target for STZ Stock?
Constellation stock sports a Strong Buy consensus rating ahead of the earnings release based on 15 Buy and two Hold recommendations assigned in the past three months. Meanwhile, the average STZ stock price target of $270.29 implies 9.5% upside potential.
