Citigroup upgrades Brown-Forman to 'neutral', shares rise

Brown-Forman

27/03/2026 16:06

Corrects to remove extraneous text from sixth bullet

** Shares of Jack Daniel maker Brown-Forman BFb.N up 6% at $27.31

** Citigroup upgrades rating to "neutral" from "sell"; raises PT to $28 from $24

** Brokerage says "we believe a potential transaction is a way for the two companies and families to join forces to respond to a challenging distilled spirits category environment with the post-COVID downturn resulting in slower category growth and large inventory build-up"

** Adds the deal "would give more exposure to many emerging markets such as India and China, where BFB is currently under-exposed"

** 4 of 18 brokerages rate the stock "buy" or higher, 9 "hold" and 5 "sell" or lower; median PT is $30 - data compiled by LSEG

** France's Pernod Ricard PERP.PA and Brown-Forman are in discussions about a possible merger, the companies said on Thursday

** Stock fell 31% in 2025

 (Reporting by Sanskriti Shekhar in Bengaluru)

 ((Sanskriti.Shekhar@thomsonreuters.com))