Constellation Brands Off to a 'Strong Beginning' in 2026: Analyst Expects Robust Performance for Leading Beer Company

Constellation Brands Surges After Exceeding Q3 Expectations

Constellation Brands (NYSE: STZ) saw its stock climb on Thursday following the release of third-quarter results that surpassed analyst forecasts for both revenue and earnings per share. According to one analyst, these impressive numbers set a positive tone for the company as it heads into 2026.

What’s Driving STZ’s Upward Trend?

The company’s shares are gaining momentum after outperforming Wall Street’s projections. Analyst Gerald Pascarelli from Needham has reiterated his Buy recommendation for Constellation Brands, maintaining a price target of $180.

Key Insights from the Analyst

• Pascarelli described the third-quarter performance as stronger than anticipated, with revenue, operating income, and earnings per share all exceeding expectations.
• He noted that recent improvements in scanner volume during December, combined with easier year-over-year comparisons, could foster increased optimism among investors.
• Both the beer and wine divisions delivered operating income above forecasts, and beer depletion rates outpaced scanner data prior to the earnings release.
• The company has reaffirmed its full-year outlook, signaling confidence in its ongoing strategy.

Pascarelli commented, “We consider this quarter a robust start to the new calendar year and anticipate an even more favorable environment over the next twelve months.” He also suggested that diminishing challenges and more favorable comparisons could continue to boost the stock’s performance.

He added, “Despite a challenging market, STZ continues to gain market share, and its brand health remains among the best in the industry. Given the current discounted valuation, we believe that most of the negative sentiment is already reflected in the share price.”

STZ Stock Performance

On Thursday, Constellation Brands’ shares rose by 3.8% to $146.02. Over the past year, the stock has traded between $126.45 and $207.90, but it has declined 33.4% during that period.

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