Constellation Brands’ Q1 Earnings Preview
<p>Deutsche Bank analysts released their outlook on <a href='https://financialmodelingprep.com/financial-summary/STZ'>Constellation Brands, Inc. (NYSE:STZ)</a> ahead of the company’s upcoming Q1 earnings, expected to be reported on June 30.</p>
<p>Amidst a deteriorating market backdrop, rising rates, and record inflation, the analysts see investors as fairly divided with respect to the company. On the one hand, bears see elevated trade-down risk to its above premium beverage alcohol portfolio and view the company's reticence to take a more meaningful price in beer to offset inflation as evidence of a lack of true pricing power. </p>
<p>Bulls, however, continue to see strong execution in beer and improving performance in wine & spirits, ample growth opportunities, and moderating inflationary headwinds positioning the company to achieve, if not beat, its 2023 outlook. </p>
<p>Overall, the analysts take a more neutral stance, with their estimates biased higher on revenues versus consensus estimates heading into Q1/23 results, but lower on margins given incremental gross margin headwinds and elective investments in SG&A and other capabilities. The analysts lowered their price target on the company’s shares to $248 from $250, while reiterating their hold rating.</p>


NYSE:STZ