Constellation Brands

Constellation Brands plunged more than 5% intraday on Monday, pressured by market concerns over peak summer beer demand following a Q1 beat where revenue still fell 3% YoY to $2.43B and growing competition in the non-alcoholic beer space. Although multiple analysts like those at RBC reiterated Outperform/buy ratings, Bank of America lowered its price target from $152 to $145, further denting valuation sentiment. The stock now trades at $130.20, well below its MA20 ($141.51) and MA60 ($147.66), with a YTD decline of ~7.8% and nearly 27% off the 52-week high of $178.14; after-hours trading saw a modest bounce to $136.77. However, Q1 net income surged 27% to $653.8M and EPS jumped 31% to $3.79, while the upcoming World Cup could lift beer consumption in H2.