Factbox-From Johnnie Walker to Corona beer, major alcohol firms could see tariff hit By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2025
0mins
Should l Buy STZ?
Source: Investing.com
Impact of Tariffs on Beverage Companies: U.S. President Trump's new tariffs on imports from Mexico, Canada, and China could significantly affect major beverage companies like Diageo, Pernod Ricard, and Constellation Brands, with potential earnings impacts due to their reliance on imported products.
Retaliatory Measures by Canada and Mexico: Both Canada and Mexico have announced retaliatory tariffs in response to the U.S. tariffs, which may further complicate the market for American whiskey and tequila brands, affecting companies such as Brown-Forman and Becle.
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Analyst Views on STZ
Wall Street analysts forecast STZ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for STZ is 163.00 USD with a low forecast of 135.00 USD and a high forecast of 209.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
7 Buy
7 Hold
1 Sell
Moderate Buy
Current: 164.330
Low
135.00
Averages
163.00
High
209.00
Current: 164.330
Low
135.00
Averages
163.00
High
209.00
About STZ
Constellation Brands, Inc. is a producer and marketer of beer, wine, and spirits with operations in the United States, Mexico, New Zealand, and Italy with brands, such as Corona Extra, Modelo Especial, Robert Mondavi Winery, Kim Crawford, The Prisoner Wine Company, High West, Casa Noble, and Mi CAMPO. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. In the Beer segment, its portfolio consists of high-end imported beer brands and ABAs. It has a perpetual brand license to produce its Mexican beer portfolio and to import, market, and sell such a portfolio in the United States. In the Wine and Spirits segment, it sells a portfolio that includes higher-end wine brands complemented by certain higher-end spirits brands. Its Corporate Operations and Other segment consists of costs of corporate development, corporate finance, corporate strategy, executive management, growth, human resources, internal audit, investor relations, IT, legal and public relations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Focus on Premium Products: The company has divested its lower-end wine brands like Woodbridge, with CEO Bill Newlands stating that focusing on high-end products will enhance performance, suggesting that this strategy will lead to higher profit margins in the future.
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