Piper Sandler Cuts Price Target on Constellation Brands (STZ) as it Faces Headwinds From GLP-1 Weight Loss Drugs

Constellation Brands, Inc. (NYSE:STZ) ranks among the best misdeed stocks to bargain successful 2026. On November 21, Piper Sandler chopped its terms people for Constellation Brands, Inc. (NYSE:STZ) to $135 from $155 portion keeping a Neutral standing for the intoxicant company. The steadfast cited expanding strain from GLP-1 value nonaccomplishment pharmaceuticals arsenic a large crushed for the downgrading, stating that caller terms cuts for these prescriptions person apt encouraged user uptake. According to Piper Sandler, this inclination mightiness nutrient an other 30-70 ground constituent yearly headwind for US intoxicant sales, compounding beer’s existing antagonistic 4.7% class trend.

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The steadfast besides cited higher intoxicant by measurement beverages arsenic different hurdle, which mightiness effect successful a percent constituent oregon higher of measurement strain, with further class innovation predicted successful this market.

As a consequence, Piper Sandler reduced its estimation of brew measurement maturation by astir 1.0 percent points for Constellation’s fiscal 4th fourth of 2026, and by astir 1.5 percent points each 4th starting with the fiscal archetypal 4th of 2027.

Constellation Brands, Inc. (NYSE:STZ) indicated successful September that it volition trim its afloat fiscal twelvemonth guidance owing to a “challenging macroeconomic environment,” cutting its comparable net per stock anticipation to $11.30 to $11.60, down from $12.60 to $12.90. The institution besides stated that it expects integrated nett income to shrink 4% to 6% successful fiscal 2026, down from a erstwhile estimation of 1% maturation to 2% drop.

Constellation Brands, Inc. (NYSE:STZ) produces beer, wine, and spirits, operating celebrated brands specified arsenic Corona, Modelo, Robert Mondavi Winery, and Kim Crawford, among others.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.