Research Alert: Stz: Another Beat, But Fy 27 Guidance Weaker-than-expected

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target by $5 to $190, based on a FY 28 P/E of 15.1x, a steep but justified discount to STZ's five-year average forward P/E of 19.0x. We lower our FY 27 adjusted EPS estimate to $12.20 from $13.00 and introduce FY 28 at $13.25. Following a better-than-expected quarter, we are reiterating our Buy but lowering our price target on STZ. In our view, the stock's risk/reward remains compelling at current levels and management continues to do an admirable job navigating broader demand-related headwinds as brands such as Modelo and Pacifico continue to take market share from domestic brewers. While STZ's FY 27 earnings guidance disappointed, we highlight its long history of conservative guidance and see reasons for optimism in the near-term, with consumption expected to increase in tandem with the upcoming World Cup. We continue to regard STZ as a best-of-breed name in an out-of-favor industry, and its generous cash returns provide investors with incentive to wait until fundamentals improve.

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $5 to $190, based on a FY 28 P/E of 15.1x, a steep but justified discount to STZ's five-year average forward P/E of 19.0x. We lower our FY 27 adjusted EPS estimate to $12.20 from $13.00 and introduce FY 28 at $13.25. Following a better-than-expected quarter, we are reiterating our Buy but lowering our price target on STZ. In our view, the stock's risk/reward remains compelling at current levels and management continues to do an admirable job navigating broader demand-related headwinds as brands such as Modelo and Pacifico continue to take market share from domestic brewers. While STZ's FY 27 earnings guidance disappointed, we highlight its long history of conservative guidance and see reasons for optimism in the near-term, with consumption expected to increase in tandem with the upcoming World Cup. We continue to regard STZ as a best-of-breed name in an out-of-favor industry, and its generous cash returns provide investors with incentive to wait until fundamentals improve.