Bank of America has adjusted its target price for Constellation Brands (STZ, Financial), decreasing it from $205 to $195, while maintaining a Neutral rating on the company's stock. Despite this revision, analysts express optimism about Constellation's ability to surpass its market categories, driven by recent strategic initiatives.
The company is expected to demonstrate more consistent performance relative to its targets following its latest quarterly results and strategic announcements. Constellation has been actively streamlining its operations by shedding popular wine brands and assets, a move intended to simplify its business model and conclude efforts to revitalize these segments.
These strategic changes are seen as a positive step in reducing operational complexity, enabling the company to focus on areas with greater growth potential, according to the research note shared with investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Constellation Brands Inc (STZ, Financial) is $217.74 with a high estimate of $300.00 and a low estimate of $165.00. The average target implies an upside of 17.30% from the current price of $185.63. More detailed estimate data can be found on the Constellation Brands Inc (STZ) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, Constellation Brands Inc's (STZ, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Constellation Brands Inc (STZ, Financial) in one year is $277.03, suggesting a upside of 49.24% from the current price of $185.63. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Constellation Brands Inc (STZ) Summary page.
