Constellation may see double-digit earnings growth this year, says Wells Fargo

Wells Fargo keeps an Overweight rating on Constellation Brands with a $300 price target post the fiscal Q1 report. The firm understands that investors may be tired of the stock’s underperformance over the past six years but says “fundamentals win out.” Fiscal 2025 may be Constellation’s first year of double digit earnings growth since fiscal 2018 and after the Q1 report, “this seems even likelier,” the analyst tells investors in a research note. The firm thinks the company’s beer depletions will prove better than the bear case in the coming weeks and that there is upside to beer gross margin.