Hamna Asim
2 min read
Brown-Forman Corporation (NYSE:BF-B) is one of the best wide moat stocks to buy now. On June 9, UBS analyst Peter Grom maintained a Neutral rating on Brown-Forman and slashed the price target from $38 to $30. The price target was amended after the company disclosed challenges at the end of FY2025, with future forecasts suggesting that these issues will persist.
Brown-Forman Corporation (NYSE:BF-B)’s Q4 results and outlook for the next year fell short of Street estimates. The company’s financial outcomes triggered investor concerns about the present hindrances and whether they will continue in the future or remain a temporary setback.
A close-up of bottles of whisky and other alcoholic beverages from a winery.
The analyst commented that before the Q4 results, investors believed that the biggest headwinds had already been priced into the stock, and the possible cost cutting might result in more profits. However, the actual earnings were not aligned with this optimism, leading people to rethink the company’s long-term growth potential.
Despite the share price drop, Brown-Forman Corporation (NYSE:BF-B)’s valuation is promising, trading at roughly 17x the earnings, which is less than its 5-year average of about 33x. While the valuation is attractive, the analyst noted that the stock will potentially remain within a specific range until more compelling data emerges about future revenue growth.
Brown-Forman Corporation (NYSE:BF-B) is a leading American producer of premium alcoholic beverages, known for iconic brands like Jack Daniel’s, Woodford Reserve, and Herradura.
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Disclosure: None.
