Constellation Brands' Fiscal 2027 Guidance Related to Weaker Beer Topline Growth, UBS Says

Constellation Brands' (STZ) "disappointing" fiscal 2027 guidance is related to weaker beer topline growth and lower wine and spirits operating margins, UBS said in a Wednesday research report.Although investors are intrigued by the potential for better beer depletion growth and market share gains, UBS said it is not clear if the Q4 print would be a catalyst, given the stock having become more crowded on the long side, analysts wrote.Management expects shipments in 2027 to be aligned and seasonal cadence to be consistent with earlier years, according to the note.The brokerage reiterated its buy rating on the stock and price target of $176 per share.Price: $161.61, Change: $+11.35, Percent Change: +7.55%

-- Constellation Brands' (STZ) "disappointing" fiscal 2027 guidance is related to weaker beer topline growth and lower wine and spirits operating margins, UBS said in a Wednesday research report.

Although investors are intrigued by the potential for better beer depletion growth and market share gains, UBS said it is not clear if the Q4 print would be a catalyst, given the stock having become more crowded on the long side, analysts wrote.

Management expects shipments in 2027 to be aligned and seasonal cadence to be consistent with earlier years, according to the note.

The brokerage reiterated its buy rating on the stock and price target of $176 per share.

Price: $161.61, Change: $+11.35, Percent Change: +7.55%