Constellation Brands Stock Drops Over 3% Amid Bearish Analyst Sentiment
Constellation Brands (STZ) shares fell sharply on Tuesday, declining more than 3% as analysts turned bearish on the beverage giant. The sell-off contrasted with a 0.4% gain in the broader market index.
Mizuho Securities analyst Peter Galbo downgraded the stock to underperform, slashing his price target from $182 to $150. His report highlighted weakening beer consumption trends—a critical segment for Constellation, which generated $2.2 billion in beer sales last quarter versus just $281 million from wine and spirits.
Fellow analyst Filippo Falorni echoed concerns, citing softening demand across alcoholic beverages. While acknowledging Constellation's strong cash FLOW and buyback program, both analysts emphasized structural headwinds in the sector.
