Jefferies downgraded Constellation Brands (STZ) from a 'Buy' to a 'Hold' rating. The firm simultaneously cut its price target from $170.00 to $154.00.
The downgrade stems from the firm’s acknowledgment that it "underestimated the duration of demand headwinds" impacting the beverage company.
Jefferies specifically linked the revised outlook to the ongoing effects of immigration policies. These policies affect Hispanic consumers, who represent a crucial demographic for Constellation’s key beer brands.
This analyst action follows a significant year-to-date decline of nearly 34% for STZ stock. Furthermore, the consensus rating from twenty-eight brokerages covering the company is also a "Hold."