Piper Sandler Downgrades Constellation Brands (STZ) to Neutral

Piper Sandler analyst Michael Lavery downgraded Constellation Brands (NYSE: STZ) from Overweight to Neutral with a price target of $200.00 (from $245.00).

The analyst comments: "We downgrade STZ to Neutral, as President Trump has followed through on his pledge to impose 25% tariffs on all Mexican imports, which came into effect on 2/1/25. The duration of these tariffs is not yet clear, but for modeling purposes, we assume for now that they last for at least about one quarter. We update our model to include a F1Q26 margin hit accordingly. However, if these tariffs lasted a full fiscal year, we recognize a potential $3.00–3.75 hit to F26E EPS, though potential pricing and volume headwinds make it difficult to estimate. We also update our model for weaker top-line retail momentum. We lower our F26E EPS from $15.01 to $13.75, and our F27E EPS from $16.63 to $15.50. We lower our multiple to ~13.0x C26E EPS (prior ~15.0x) on uncertainty from tariff risk exposure and weaker top-line momentum. We lower our price target from $245 to $200."

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 $180.80 yesterday.

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