Constellation Brands slips after getting its only “sell” rating from Bank of America
Constellation Brands is down nearly 1% after analysts at Bank of America downgraded it to “underperform” from “neutral.”
Constellation, which sells a variety of beers including Modelo Especial in the US, is facing headwinds from declining beer consumption and pressure on Hispanic consumers, the analysts said. They lowered their price target for the company to $150 from $182.
It’s the only “sell”-equivalent rating among analysts polled by Bloomberg. Eighteen analysts who cover the stock rate it a buy, while nine others deem it a hold.
The downgrade comes after Citi also lowered its price target for Constellation and put it on its “negative 30-day catalyst watch” on Monday, citing concerns that it will lower guidance at its investor conference on September 2. The company is down more than 25% since the start of the year as tariffs, increased immigration enforcement, and long-term trends in the alcohol industry weigh on growth.
