These Analysts Boost Their Forecasts On Constellation Brands Following Upbeat Results

Constellation Brands Inc STZ reported better-than-expected fourth-quarter financial results on Thursday.

Constellation Brands reported fourth-quarter FY24 sales growth of 7.1% year-on-year to $2.14 billion, beating the analyst consensus estimate of $2.10 billion. Comparable EPS, excluding Canopy EIE, was $2.30. Comparable EPS of $2.26 beat the consensus estimate of $2.09, according to data from Benzinga Pro.

“We also generated strong operating cash flow, which enabled continued execution of our capital allocation priorities including: reducing our net leverage ratio from 3.6x to 3.2x, returning over $900 million to shareholders in dividends and share repurchases, and deploying approximately $900 million to modular brewery capacity additions to support the growth of our Beer Business,” said CFO Garth Hankinson.

Constellation Brands said it sees FY25 net sales growth of 6% – 7%. It expects Comparable EPS of $13.50 – $13.80 against an estimate of $13.44. The company sees an operating income growth of 10% – 12% and capital expenditures of $1.4 billion – $1.5 billion.

Constellation shares gained 0.3% to trade at $269.08 on Friday.

These analysts made changes to their price targets on Constellation following earnings announcement.

• BMO Capital raised the price target on Constellation from $290 to $315. BMO Capital analyst Andrew Strelzik maintained an Outperform rating.
• UBS boosted the price target on Constellation from $312 to $320. UBS analyst Peter Grom maintained a Buy rating.
• HSBC boosted the price target on Constellation from $290 to $300. HSBC analyst Sorabh Daga maintained a Buy rating.

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