TD Cowen maintained its "Hold" rating on Constellation Brands (STZ) but lowered its price target to $132 from $144, citing concerns over declining retail sales and a reduction in beer volume growth estimates for fiscal 2026. The analyst, Robert Moskow, pointed to socio-economic headwinds impacting consumer demand, particularly within the Hispanic community, which the company's management believes to be temporary. This action follows a period of underperformance for the stock, with the share price having trended downwards. The analyst's concerns are rooted in a 7% decline in the Beer Business's net sales in the second quarter of fiscal 2026, driven by an 8.7% drop in shipment volumes. This was attributed to distributor inventory rebalancing and the aforementioned consumer demand challenges.
Constellation Brands' Growth Concerns Lead to TD Cowen Price Target Cut
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