Citi Reiterates Buy Rating on Constellation Brands (STZ)

Citi analyst Filippo Falorni reiterated a Buy rating and $305.00 price target on Constellation Brands (NYSE: STZ)

The analyst comments "STZ will report F3Q’25 results on 1/9. We believe buy-side expectations for F3Q’25 beer depletions are in the ~4-5% range based on client conversations in recent weeks (we model +4.0%) with Nielsen scanner data at ~5.6% in F3Q’25, vs. +3.6% in FQ2 & +6.3% in FQ1. At a December conference, STZ called out a shift towards mass & club channels from independents & other non-tracked channels, which should result in a negative gap between reported depletions and scanner data (we model -160 bps). We expect STZ to reiterate its FY’25 beer guidance and slightly lower W&S guidance (potentially including the sale of Svedka based on timing of close of the deal). While we acknowledge the tariff/deportation overhangs, we reiterate our Buy rating on STZ & our $305 target price as we view STZ’s valuation of ~16x CY’25 EPS as attractive, considering STZ’s medium-term growth profile."

For an analyst ratings summary and ratings history on Constellation Brands click here. For more ratings news on Constellation Brands click here.

Shares of Constellation Brands closed at $239.45 yesterday.

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