Analyst Andrew Strelzik of BMO Capital reiterated a Buy rating on Constellation Brands, retaining the price target of $190.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Andrew Strelzik has given his Buy rating due to a combination of factors that highlight Constellation Brands’ potential for future growth despite current challenges. The company’s recent earnings exceeded expectations, driven by better-than-anticipated cost savings in its Beer segment, which suggests a stronger financial trajectory moving forward. Although there is a lack of visibility into improving demand trends, Strelzik believes that the stock has been overly penalized due to cyclical pressures and that its current valuation does not fully reflect its potential for recovery.
Strelzik also notes that while the beer market faces macroeconomic challenges, Constellation Brands has maintained its position as a leading market share gainer in the U.S. This advantageous position, coupled with the company’s strategic cost management and potential for increased cash returns to shareholders, supports the Buy rating. Despite the near-term uncertainties, the long-term growth outlook remains solid, making Constellation Brands an attractive investment opportunity with a favorable risk-reward balance.
According to TipRanks, Strelzik is a 4-star analyst with an average return of 4.2% and a 54.03% success rate. Strelzik covers the Consumer Cyclical sector, focusing on stocks such as Domino’s Pizza, McDonald’s, and Chipotle.
In another report released today, Needham also reiterated a Buy rating on the stock with a $180.00 price target.