Jefferies upgraded Constellation Brands to a Buy rating from Hold on July 7, 2025, and increased its price target to $205 from $194. The upgrade reflects the firm's view that Constellation Brands' valuation is currently too low.
Analysts at Jefferies noted that pressure on the company's core U.S. Hispanic customer base is showing signs of stabilizing. This demographic is crucial for Constellation Brands, particularly for its Modelo and Corona beer brands.
The upgrade suggests a more optimistic outlook on the company's ability to navigate current market challenges, including tariffs and consumer demand shifts. A solid balance sheet is also cited as a factor providing the company time to address negative trends.
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