UBS Raises PT on Constellation Brands, Inc. (STZ) Following Q1 2025 Earnings Release

Constellation Brands, Inc. (NYSE:STZ), with its low price-to-earnings multiple and significant presence in Warren Buffett’s investment portfolio, secures a spot on our list of the 12 Cheap Value Stocks to Buy Now According to Warren Buffett.

Constellation Brands, Inc. (NYSE:STZ) reported Q1 2025 earnings on July 1, 2025. The company missed Wall Street’s expectation of $3.57 per share EPS, reporting $3.22 per share, driven by softer organic sales growth, particularly in the beer segment. The sales decline was attributed to macroeconomic challenges and volume declines across key brands. Meanwhile, the company reported net sales of $2.52 billion, a 6% decrease YoY. The beer segment reported a 2% decline in sales.

Looking ahead, Constellation Brands, Inc. (NYSE:STZ) maintains its fiscal year guidance. It forecasted an adjusted EPS range of $12.60 to $12.90. The company remained resilient during the quarter, reporting a solid gross profit margin of 49.64% and repurchasing $381 million in shares. It also declared a quarterly dividend of $1.02 per share.

Two days later, UBS raised its price target on Constellation Brands, Inc. (NYSE:STZ) from $195 to $205, maintaining a ‘Buy’ rating. While acknowledging the company’s weaker quarter, the analyst remains optimistic about its long-term growth prospects. UBS projected low-single-digit top-line growth and mid-single-digit bottom-line growth over the long term.

Constellation Brands, Inc. (NYSE:STZ) is a global producer of beer, wine, and spirits. It is included in our list of cheap value stocks to buy.

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