Summary
- Constellation Brands has declined 41% in 12 months and is now trading at a 26% forward P/E discount to the sector median.
- STZ faces significant top- and bottom-line growth headwinds, with expansion expected to resume in FY 2026.
- Berkshire Hathaway’s 7.7% stake offers some long-term reassurance, but near-term outperformance is unlikely.
- I rate STZ stock a hold with a $150 price target, implying 9% upside …
Summary
- Constellation Brands has declined 41% in 12 months and is now trading at a 26% forward P/E discount to the sector median.
- STZ faces significant top- and bottom-line growth headwinds, with expansion expected to resume in FY 2026.
- Berkshire Hathaway’s 7.7% stake offers some long-term reassurance, but near-term outperformance is unlikely.
- I rate STZ stock a hold with a $150 price target, implying 9% upside excluding dividends.
Jonathan Knowles/DigitalVision via Getty Images
Constellation Brands (STZ) is an international beer, wine, and spirit producer that has experienced a 41% decline in the stock price over the past 12 months. The company presents a defensive approach, dividend income, and above-market margins, which may help
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