In a report released today, Timothy Ramey from Pivotal Research reiterated a Buy rating on Brown-Forman B (BF.B), with a price target of $65. The company’s shares closed yesterday at $46.66, close to its 52-week low of $45.63.
Ramey noted:
“We see this as pro- growth and as a further investment in the near double-digit growth that B-F has enjoyed in well-developed international markets. EBIT margin at 36.5% fell 140 BP yet was better than estimates (PVTL 34.8%/Street 35.6%) on a decline in SG&A; advertising spending fell 8%. The adjusted tax rate was 19.5%, favorable to our estimate and 830 BP lower than LY. Average diluted shares outstanding were up 0.1%; yet the company repurchase $122 million of its shares in the quarter. FY19 guidance remains $1.65-$1.75 compares to and GAAP EPS of $1.53. Guidance continues to imply 6%-7% underlying FY19 sales growth and the tariffs are assumed to remain. Our estimates remain $1.75 for for FY20. We have trimmed our sales growth slightly, but EBIT margins are a bit higher than previously and tax rate is a bit lower.”
According to TipRanks.com, Ramey is a 5-star analyst with an average return of 10.3% and a 60.3% success rate. Ramey covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Post Holdings Inc, and Flowers Foods.
Brown-Forman B has an analyst consensus of Moderate Buy, with a price target consensus of $57.
See today’s analyst top recommended stocks >>
The company has a one-year high of $59.58 and a one-year low of $45.63. Currently, Brown-Forman B has an average volume of 1.68M.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Brown-Forman Corp. engages in the production and distribution of alcoholic beverages. The firm also offers champagne, liqueur, scotch, tequila, vodka, whiskey and wine. Its brands include Jack Daniel, Finlandia, Herradura, El Jimador, New Mix, Canadian Mist, Chambord, Woodford Reserve, Sonoma Cutrer and Korbel.
