Constellation Brands Stock In Focus On Analyst Revision: Retail's Neutral

Constellation is also due to report its third-quarter earnings later this week.

Shares of beer and wine maker Constellation Brands were down 0.29% on Friday amid a broader decline of several beverage company stocks that came under pressure after U.S. Surgeon General Vivek Murthy issued an advisory linking cancer to alcohol consumption, but retail stayed neutral. 

Constellation is also due to report its third-quarter earnings later this week. Wall Street expects the company to post $3.33 in earnings per share on revenues of $2.54 billion.

In the most recent quarter, Constellation posted $4.32 in EPS, beating consensus estimates of $4.08 by
5.78%, according to Stocktwits data. Its revenues came in at $2.92 billion compared to the expected $2.92 billion quoted by analysts.

UBS has lowered the company's price target to $265 from $288 with a 'Buy' rating on the shares ahead of its quarterly results, The Fly.com reported. 

According to the report, UBS adjusted its underlying assumptions to reflect recent performance in the tracked data, but its Q3 and FY25 EPS estimates are unchanged at $3.24 and $13.67, respectively. 

Retail sentiment on Stocktwits was in the 'neutral' zone compared to 'extremely bearish' a day ago. Message volumes were in the 'high' zone compared to 'extremely high'.

Heading into earnings, UBS said it does not expect the print to impact in a meaningful way, and thinks investors are likely to take a wait-and-see approach, said the Fly.com report.

On Friday, other beverage stocks that came under pressure were Anheuser-Busch (BUD), which dropped over 2%, Diageo (DEO) which saw a decline of more than 3%, and Molson Coors (TAP) which saw a near two-month low.

The advisory had called for an updated Surgeon General’s warning label on alcohol-containing beverages to include a cancer risk warning. 

Constellation stock is up 0.25% year-to-date.

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