Added to YB: 2026-01-22
Pitch date: 2026-01-20
STZ [bullish]
Constellation Brands, Inc.
-4.76%
current return
Author Info
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Company Info
Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy.
Market Cap
$26.5B
Pitch Price
$162.36
Price Target
460.00 (+197%)
Dividend
2.67%
EV/EBITDA
12.46
P/E
24.36
EV/Sales
3.97
Sector
Beverages
Category
turnaround
Constellation Brands: A Cyclical Hangover
STZ: Hispanic consumer sentiment shock drove beer depletions from +3% to -3% post-Trump election/tariffs, but STZ gaining market share in 49/50 states despite category decline. Beer margins compressed to 38-39% from 40%+ but still excellent. $200M cost restructuring underway, exited $900M wine assets to focus on premium Mexican imports. 3x debt/EBITDA manageable. Model projects 8-15% IRR over 9 years at current $153 vs $290-460 price targets.
Read full article (13 min)