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On Wednesday, Citi maintained a Buy rating on Constellation Brands (NYSE:) shares, with a steady price target of $305.00. The firm anticipates the company to benefit from favorable conditions that could act as catalysts over the next month.
These include improved beer sales comparisons from last March, when California experienced poor weather, and the potential for gains in shelf space during spring 2024 resets.
The analyst from Citi expects to see an uptick in Constellation Brands’ California scanner trends in the upcoming Nielsen data releases scheduled for March 19, April 2, and April 16. They also foresee positive earnings for the company on April 11. Despite similar poor weather conditions in California this February, the analyst believes that the year-over-year comparison to last March’s performance will provide sufficient leeway for improved beer sales trends.
Constellation Brands, traded on the New York Stock Exchange under the ticker NYSE:STZ, is being closely watched by Citi for a 30-day period due to these anticipated positive developments. The firm’s confidence is rooted in the expectation of easier comparisons to last year’s sales affected by adverse weather, alongside forthcoming gains from product placements.
Constellation Brands is set to release its earnings in mid-April, and with the analyst’s positive outlook, market watchers will be looking for signs of the anticipated acceleration in the company’s beer segment performance. This follows the pattern of looking to Nielsen data releases for early indicators of consumer trends and company performance in the retail sector.
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