Strong Portfolio: Constellation Brands owns popular beer brands like Corona, Modelo, and Pacifico, but has faced a 15% decline in sales recently, primarily due to asset sales in its wine and spirits division.
Cash Flow and Valuation: Despite lower sales, the company generated significant free cash flow, allowing for attractive dividend payments, and the stock is currently undervalued compared to its historical price-to-free-cash-flow multiple.
Market Position: The beer segment, which constitutes 94% of total net sales, is benefiting from the growing trend of imported beers in the U.S., with Constellation's brands gaining market share.
Investment Opportunity: The current stock price presents a rare buying opportunity for investors, as the company is well-positioned for long-term growth despite short-term sales pressures.
STZ
$135.01+Infinity%1D
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
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.
11 Buy
8 Hold
2 Sell
Moderate Buy
Current: 136.810
Low
123.00
Averages
167.40
High
215.00
Current: 136.810
Low
123.00
Averages
167.40
High
215.00
Jefferies
Buy
to
Hold
downgrade
$170 -> $154
2025-12-16
New
Reason
Jefferies
Price Target
$170 -> $154
2025-12-16
New
downgrade
Buy
to
Hold
Reason
Jefferies downgraded Constellation Brands to Hold from Buy with a price target of $154, down from $170. In July, the firm believed the selloff in shares went too far with easier comps leading to better visibility ,but Hispanic consumer fears are more prolonged than the firm had previously thought, which will weigh on top-line results regardless of the strength of the brands, the analyst tells investors in a research note. Jefferies further contends that the current fundamentals lack support for an inflection.
Deutsche Bank
Hold
maintain
$156 -> $160
2025-12-15
New
Reason
Deutsche Bank
Price Target
$156 -> $160
2025-12-15
New
maintain
Hold
Reason
Deutsche Bank raised the firm's price target on Constellation Brands to $160 from $156 and keeps a Hold rating on the shares ahead of the fiscal Q3 report.
Piper Sandler
Michael Lavery
Neutral
downgrade
$155 -> $135
2025-11-21
Reason
Piper Sandler
Michael Lavery
Price Target
$155 -> $135
2025-11-21
downgrade
Neutral
Reason
Piper Sandler analyst Michael Lavery lowered the firm's price target on Constellation Brands (STZ) to $135 from $155 and keeps a Neutral rating on the shares. The firm says it is updating its models and price targets for recently announced GLP-1 news, higher ABV headwinds, as well as tariff relief and other company specific updates. President Trump recently announced deals with Eli Lilly (LLY) and Novo Nordisk (NVO) to cut GLP-1 drug prices for Medicare and Medicaid beneficiaries in 2026 and offer the treatments directly to consumers at a discount on TrumpRX. Faster user uptake growth in the US appears directionally clear, and Piper now estimates about 20% of the U.S. population could be users by 2028.
Citi
Neutral
downgrade
$155 -> $145
2025-09-23
Reason
Citi
Price Target
$155 -> $145
2025-09-23
downgrade
Neutral
Reason
Citi lowered the firm's price target on Constellation Brands to $145 from $155 and keeps a Neutral rating on the shares ahead of the fiscal Q4 report on October 6. The firm cites scanner data weakness and potential margin risk for the target cut.
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.
