Constellation Brands gains after posting smaller-than-expected Q2 sales drop

Constellation Brands

07/10/2025 09:16

** Shares of Corona beer maker Constellation Brands STZ.N rise nearly 3.1% to $143.01 in premarket trading

** Co posted a smaller-than-expected drop in second-quarter sales on Monday, aided by steady demand for beer, even as the company's key Hispanic consumers reel from the Trump administration's immigration policies

** J.P.Morgan, maintaining a "neutral" stance, says the outlook remains weak, with management citing financial strain among key customers, especially those in tough manual jobs and the Hispanic community, a major beer consumer group facing economic and social pressures

** Sharp change in performance can't be fully explained by weakness in the broader category, which has remained mostly stable, raising concerns about Constellation's credibility in its communication and planning, says Roth MKM

** Average rating of 26 analysts is "buy"; median PT of $170 - data compiled by LSEG

** As of last close, STZ is down nearly 37.2% YTD

 (Reporting by Akriti Shah in Bengaluru)

 ((akriti.shah@thomsonreuters.com))