Brown-Forman price target lowered to $49 from $55 at Roth MKM

Roth MKM analyst Bill Kirk lowered the firm’s price target on Brown-Forman to $49 from $55 and keeps a Neutral rating on the shares. The company’s Q4 revenue missed expectations amid softer consumer/whiskey consumption, right-sizing of elevated trade and household inventories, and a return of gross margin contraction after a rare three quarter period of expansion, the analyst tells investors in a research note. The firm adds that it still has inventory concerns for Brown-Forman and also sees an emerging risk of less rational competitor pricing behavior.