Constellation Brands Shares Rise 4.66% Following Relaxation of Alcohol Guidelines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Benzinga
- Stock Price Increase: Constellation Brands' shares rose 4.66% to $147.57 on Thursday, reflecting market optimism following the Trump administration's relaxation of alcohol consumption guidelines, despite potential public health risks.
- Policy Shift: The new guidelines released by the Trump administration avoid specific serving limits and simply advise Americans to drink less, effectively ending a 35-year recommendation, which could influence consumer drinking behavior and company sales.
- Health Impact Warnings: Public health experts caution that loosening the guidelines may encourage increased drinking, leading to more alcohol-related illnesses and deaths, posing potential risks to the company's future market performance.
- Market Reaction: Despite the health risks, the market's positive response to the new guidelines indicates investor optimism regarding Constellation Brands' market opportunities under the relaxed policy.
Analyst Views on STZ
Wall Street analysts forecast STZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STZ is 167.40 USD with a low forecast of 123.00 USD and a high forecast of 215.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
11 Buy
8 Hold
2 Sell
Moderate Buy
Current: 147.960
Low
123.00
Averages
167.40
High
215.00
Current: 147.960
Low
123.00
Averages
167.40
High
215.00
About STZ
Constellation Brands, Inc. is a producer and marketer of beer, wine, and spirits with operations in the United States, Mexico, New Zealand, and Italy with brands, such as Corona Extra, Modelo Especial, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, High West, Casa Noble, and Mi CAMPO. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. In the Beer segment, its portfolio consists of high-end imported beer brands and ABAs. It has a perpetual brand license to produce its Mexican beer portfolio and to import, market, and sell such a portfolio in the United States. In the Wine and Spirits segment, it sells a portfolio that includes higher-end wine brands complemented by certain higher-end spirits brands. Its Corporate Operations and Other segment consists of costs of corporate development, corporate finance, corporate strategy, executive management, growth, human resources, internal audit, investor relations, IT, legal and public relations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
