E-Malt.com News article: USA: UBS cuts Constellation Brands stock price target on weaker beer trends

UBS lowered its price target on Constellation Brands to $175 from $186 while maintaining a Buy rating on June 16, Investing.com reported.

The firm adjusted its assumptions for the first quarter and fiscal year 2027 to reflect weaker beer consumption trends. UBS set its first-quarter earnings per share estimate at $3.12, below the Visible Alpha consensus of $3.24. The downward revision aligns with broader analyst sentiment, as InvestingPro data shows 5 analysts have revised their earnings downwards for the upcoming period.

Constellation Brands is scheduled to report first-quarter earnings on June 30 after the market close. The company reported solid fourth-quarter results and outlined initial fiscal 2027 guidance that many viewed as conservative.

Shares have declined 11.4% since the fourth-quarter report compared with a 3.6% gain for the XLP consumer staples index. The stock currently trades at $142.01, yet InvestingPro analysis suggests Constellation remains undervalued relative to its Fair Value. For investors seeking deeper insights, InvestingPro offers 4 additional exclusive tips, plus comprehensive Pro Research Reports covering this and 1,400+ other US equities. Demand trends have deteriorated considerably over the past two months.

UBS said it does not expect first-quarter results to be a meaningful catalyst but continues to view the guidance as achievable. The stock trades at approximately 12.5 times the firm’s revised next-twelve-months earnings per share estimate.

In other recent news, Constellation Brands announced a $500 million senior notes offering, with the notes priced at 4.850% and due in 2031. The offering is set to close soon, pending customary conditions, with major financial institutions like BofA Securities and Goldman Sachs involved in the underwriting. Meanwhile, the U.S. beer market has seen a decline in volume, with Bernstein reporting a 5.3% drop over a 12-week period, indicating a stable but weak trend. Bank of America analysts noted that beer consumption trends worsened in the second quarter of 2026, with a year-over-year decline of 1.6% in the first quarter. Shipments also fell by 3.0% during this time. Barclays’ analysis revealed that consumer goods companies, including beverage makers, are managing rising costs while maintaining their profit forecasts. This suggests resilience in the sector despite cost pressures. These developments provide a snapshot of the current challenges and strategies within the industry.


19 June, 2026