Brown-Forman price target lowered to $55 from $59 at Roth MKM

Roth MKM lowered the firm’s price target on Brown-Forman to $55 from $59 and keeps a Neutral rating on the shares after its Q4 results and guidance. The company has now reported gross margin expansion in three straight quarters – a reversal of almost a decade of contraction, but while this development is exciting longer term, the firm cautions about the “potential headwinds”, including a less favorable relative pricing environment, weakening consumer spending on alcohol, and high channel inventory levels, the analyst tells investors in a research note.