Constellation Brands: Can the alcohol stock rise up to $325?

Last Updated: 23. Januar 2024By

Was there something about a crisis? Not for beer and wine drinkers, at least. Constellation Brands is a US-based company specializing in the production and distribution of alcoholic beverages. The focus is on producing and marketing a diverse selection of wine varieties. In addition, they also offer high-proof spirits, various beer varieties, and other selected alcoholic products.

Profit increases by almost 13% In the third quarter, the company reported earnings per share of $3.19 per diluted share, compared to $2.83 in the previous year. Analysts had expected $3. Net sales were $2.47 billion, compared to $2.44 billion in the previous year. Analysts had predicted $2.54 billion.

Strong beer portfolio „The continued strong performance of our beer portfolio in the third quarter has given us the confidence to raise our forecast for the full year operating results of this business segment,“ said CFO Garth Hankinson.

Annual forecast higher than expected by analysts For the fiscal year 2024 ending in February, the beer and wine manufacturer still expects adjusted earnings between $12 and $12.20 per share. Analysts are expecting $11.89. The company has raised its forecast for operating income to an increase of 7 to 8%, compared to the previous forecast of 6 to 7%.

Alcohol stock: Potential up to $325 Conclusion: Despite some heavy fluctuations, Constellation Brands has returned to an upward trend, as you can see from the chart. How do analysts feel about it? The answer: clearly positive. 20 out of 25 analysts recommend buying and 5 recommend holding. Not a single analyst wants to sell. The average analyst price target is $293, but some have recently raised it to $325. With a P/E ratio of just under 22, the alcohol stock is no longer cheap. Due to expected earnings growth, the P/E ratio will decrease to 19.1 in 2025.