Goldman Sachs keeps a ‘Buy’ rating on Constellation Brands, citing stronger brand momentum and solid earnings.
- Goldman Sachs cut Constellation Brands’ price target to $155 from $180, still implying a 31% upside.
- Constellation said September trends could lift FY27 results toward the upper end of guidance.
- Constellation CEO Nicholas Fink sees renewed beer growth through stronger marketing.
Constellation Brands (STZ) stock is looking to break a seven-week losing streak, and Goldman Sachs isn’t giving up on the beer giant. Despite slashing its price target, the firm kept its Buy rating as CEO Nicholas Fink points to renewed brand momentum, emerging products and aggressive marketing to reignite growth.
Constellation Brands stock edged 0.65% lower overnight Wednesday after a 2% gain in regular session. The stock has rallied nearly 5% so far this week and is on track for its best week since June.
Goldman Sachs Stays Bullish On Constellation Brands Despite Target Cut
Goldman Sachs cut its Constellation Brands price target to $155 from $180 but kept its ‘Buy’ rating. The new target still suggests about 31% upside from the stock’s last close, showing the firm remains positive on the shares.
Constellation Brands reported comparable earnings of $3.74 per share, beating analysts’ consensus estimate of $3.60, according to Fiscal.ai data. Also, management offered investors another reason for optimism during the earnings call. Constellation said continued improvement in September could allow the company to finish fiscal 2027 near the top of its comparable earnings outlook of $11.20 to $11.90 per share. Goldman Sachs said it was encouraged by that possibility.
Constellation Targets A Beer Growth Revival
Constellation Brands CEO Nicholas Fink said the company sees more ways to boost beer sales through stronger marketing, better brand execution and new products.
“We’re a growth business and we need to get that engine humming again. That’s going to take sustained work across marketing, brand positioning, commercialization, products, and packs,” Fink said during the earnings call.
“Take Corona, for example. We put more behind Corona and got more focused on granular execution. It’s not a brand that requires awareness driving; it’s a brand that requires saliency. And we’re seeing green shoots already. If I look at Circana data, our 12-week is better than our 52-week and our 4-week is better than our 1-week. I’m not satisfied with where it is, but it’s trending in the right direction—a lot better than it was a year ago.”
Fink said Modelo is also showing signs of improvement, with the company targeting Hispanic consumers and using major sports events like football season to reach more U.S. customers.
STZ Stock: Retail Stance
On Stocktwits, retail sentiment around the stock fell to ‘neutral’ from ‘extremely bullish’ territory the previous day.
A user said, “They have a 2.5 billion share buyback authorization that represents about 12% of the market cap.”
STZ stock has declined over 14% year-to-date.
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