On Thursday, Bernstein analysts lowered the price target for Brown Forman (NYSE:BFb) shares, traded on the New York Stock Exchange under the ticker NYSE:BF-B, from $61.00 to $57.50. Despite this reduction, Bernstein maintained an Outperform rating on the stock. The decision came amidst a period of trading lows for the company, which have not been seen since 2011.
Analysts pointed to a combination of factors that could be causing investor concern, including the normalization of US spirits sales, ongoing tariffs affecting imports from Mexico and retaliatory tariffs from the European Union, as well as the potential for an oversupply of US whiskey.
The analysts at Bernstein expressed their belief that the recent sell-off in Brown Forman shares might be an overreaction. They acknowledged that while the company's story is not straightforward and may not appeal to risk-averse investors, its long-term fundamentals remain strong. The analysts noted the difficulty in identifying clear positive catalysts for the stock at this time.
In addition to their assessment of Brown Forman, Bernstein also issued a rating for Boston Beer (NYSE:SAM), with a Market Perform rating set alongside a price target of $315, adjusted upwards from the previous target of $305. This adjustment reflects Bernstein's updated earnings forecast for Boston Beer, which takes into account the company's latest guidance and a moderated top-line forecast. This moderation is based on weaker scanner data that Bernstein has reviewed.
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