Selected stock price target news of the day - July 5th, 2024

By: Matthew Otto

Constellation Brands Exceeds Q1 EPS Estimates, Maintains Growth in Beer Segment

Constellation Brands reported their first-quarter earnings call, showcasing earnings per share of $3.57, surpassing analyst estimates of $3.46 by $0.11. Revenue for the quarter came in at $2.66 billion, below the consensus estimate of $2.67 billion.

The enterprise dollar sales increased by 4.5 percentage points above the entire consumer packaged goods sector, driven primarily by their Beer business, which saw a high-single digit net sales increase. The Beer segment achieved its 57th consecutive quarter of depletion growth, contributing to a 7.6% increase in shipment volume and 6.4% growth in depletions, excluding craft brand divestitures. This growth was supported by operational efficiencies, resulting in a 2.6 percentage point year-over-year expansion in operating margin to 40.6%.

In addition, Constellation Brands returned $185 million to shareholders through dividends and executed $240 million in share repurchases. The first quarter also saw advancements in their brewing capacity with ongoing developments at Obregon and Veracruz breweries. Despite a 7% decline in net sales for their Wine and Spirits business, a 14% shipment volume growth is reported in their craft spirits portfolio.

Looking ahead, Constellation Brands provided guidance for fiscal year 2025, with an EPS range of $13.50 to $13.80, aligning with the consensus estimate of $13.65. A full-year net sales growth expectation of 6% to 7% and comparable EPS growth of over 10%.

Analysts Adjust Price Targets Following Q1 Earnings

UBS analyst Peter Grom maintained a Buy rating and raised the price target from $315 to $320.
Jefferies analyst Kaumil Gajrawala maintained a Buy rating and increased the price target from $310 to $311.
JP Morgan analyst Andrea Teixeira reiterated an Overweight rating and upgraded the price target from $291 to $320.
Roth MKM analyst Bill Kirk reiterated a Buy rating and lowered the price target from $305 to $303.
BMO Capital analyst Andrew Strelzik kept an Outperform rating and a $315 price target.
Truist Securities analyst Bill Chappell kept a Hold rating and a $265 price target.

Which Analyst has the best track record to show on STZ?

Analyst Bill Kirk (MKM) currently has the highest performing score on STZ with 10/17 (58.82%) price target fulfillment ratio. His price targets carry an average of $42.76 (16.31%) potential upside. Constellation Brands stock price reaches these price targets on average within 579 days.

First Foundation Announces $228 Million Capital Raise Amidst Commercial Real Estate Challenges

First Foundation has embarked on a capital raise totaling $228 million in response to challenges stemming from its exposure to the commercial real estate (CRE) sector. This strategic move comes amidst a broader landscape where several U.S. regional and mid-sized banks are grappling with similar CRE-related challenges, impacting financial stability and growth prospects.

The capital infusion, facilitated by investments from Fortress Investment Group ($115 million), Canyon Partners ($46 million), Strategic Value Bank Partners ($22 million), North Reef Capital ($22 million), and other investors. This involves the issuance of 11,308,676 shares of common stock at $4.10 per share, complemented by 29,811 shares of Series A Noncumulative Convertible Preferred Stock and 14,490 shares of Series B Noncumulative Convertible Preferred Stock. These financial instruments are aimed at strengthening First Foundation’s balance sheet, reducing multifamily asset concentrations, and expanding its commercial and industrial lending platforms.

Pending regulatory approvals and customary closing conditions, the transaction is expected to finalize by July 8, 2024, marking a pivotal step in First Foundation’s efforts to fortify its resilience and sustain growth amidst evolving market dynamics.

Analysts Offer Mixed Ratings and Price Targets

Piper Sandler analyst Matthew Clark maintained a Neutral rating and set a price target of $6.
Wedbush analyst David Chiaverini maintained a Neutral rating and lowered the price target from $6 to $5.
DA Davidson analyst Gary Tenner upgraded from Neutral to Buy and the price target from $8 to $9.

Which Analyst has the best track record to show on FFWM?

Analyst David Feaster (RAYMOND JAMES) currently has the highest performing score on FFWM with 2/8 (25%) price target fulfillment ratio. His price targets carry an average of $2.81 (42.00%) potential upside. First Foundation stock price reaches these price targets on average within 233 days.

FDA Approves Eli Lilly’s Donanemab (Kisunla): A New Frontier in Alzheimer’s Treatment

The Food and Drug Administration has granted approval to Eli Lilly for its Alzheimer’s drug donanemab, marketed under the name Kisunla, marking a development in Alzheimer’s treatment in the United States. This approval expands treatment options for the nearly 7 million Americans afflicted with early symptomatic Alzheimer’s disease, a condition projected to affect nearly 13 million by 2050.

The drug, a monoclonal antibody targeting amyloid plaques in the brain, aims to slow disease progression, demonstrating a 35% efficacy in reducing symptoms over an 18-month period compared to a placebo, as evidenced in late-stage trials.

Priced at approximately $12,522 for a six-month course, $32,000 for 12 months, and $48,696 for 18 months, donanemab is administered through monthly infusions, with Medicare coverage available for eligible patients. Despite its therapeutic promise, the drug carries notable risks, including severe and potentially fatal brain swelling and bleeding known as amyloid-related imaging abnormalities (ARIA), which led to three deaths among patients in clinical trials.

Analysts Maintained Ratings and Price Targets for Eli Lilly

Morgan Stanley analyst Terence Flynn maintained an Overweight rating and a $1023 price target.
BMO Capital analyst Evan Seigerman maintained an Outperform rating and a $1001 price target.
Cantor Fitzgerald analyst Louise Chen reiterated an Overweight rating and a $885 price target.

Which Analyst has the best track record to show on LLY?

Analyst Mohit Bansal (WELLS FARGO) currently has the highest performing score on LLY with 13/13 (100%) price target fulfillment ratio. His price targets carry an average of $100.89 (13.93%) potential upside. Eli Lilly and Company stock price reaches these price targets on average within 63 days.