Selected stock price target news of the day - October 7th, 2024

By: Matthew Otto

Constellation Brands Tops Q2 Estimates but Faces Ongoing Challenges in Wines and Spirits

Constellation Brands reported its second-quarter results, showcasing an adjusted earnings per share (EPS) of $4.32, $0.24 higher than the analyst estimate of $4.08. Revenue for the quarter came in at $3.14 billion, also surpassing the consensus estimate of $2.95 billion.

The performance in its beer segment, driven by continued demand for brands such as Modelo Especial and Pacifico, offset challenges in its wines and spirits division. This has been a key revenue driver, helping the company achieve 3% year-over-year net sales growth.

Despite ongoing struggles in its wines and spirits segment, which resulted in a $2.5 billion write-down for the quarter, Constellation reaffirmed its full-year guidance. Constellation expects fiscal 2025 EPS to be between $13.60 and $13.80, compared to the consensus estimate of $13.69.

Additionally, it updated its reported EPS outlook to a range of $4.05 to $4.25. Constellation also reaffirmed its fiscal 2025 operating cash flow target of $2.8 to $3.0 billion and free cash flow projection of $1.4 to $1.5 billion.

Analysts Mixed Ratings Amid Target Price Adjustments

BofA Securities analyst Bryan Spillane downgraded from Buy to Neutral and the price target from $300 to $255.
JP Morgan analyst Andrea Teixeira maintained an Overweight rating but reduced the price target from $307 to $293.
Roth MKM analyst Bill Kirk reiterated a Buy rating and the price target at $298.
Evercore ISI Group analyst Robert Ottenstein kept an Outperform rating, although lowered the price target from $310 to $300.
RBC Capital analyst Nik Modi reiterated an Outperform rating and a $308 price target.

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

Analyst John Staszak (ARGUS) currently has the highest performing score on STZ with 7/10 (70%) price target fulfillment ratio. His price targets carry an average of $47.48 (18.37%) potential upside. Constellation Brands stock price reaches these price targets on average within 637 days.

Albany Revises 2024 Outlook, Expects Revenue of $1.22 to $1.26 Billion Due to Aerospace Challenges

Albany International has provided a preliminary update to its 2024 financial outlook, primarily adjusting revenue and profitability expectations for its aerospace business within the Engineered Composites (AEC) segment. Following a comprehensive review of costs associated with large, complex aerospace contracts, Albany has revised its labor, material input, and scrap cost assumptions.

This adjustment is expected to lead to an approximate $24 million negative Estimate-at-Completion (EAC) adjustment in Q3 2024, along with projected reductions in pre-tax earnings by an additional $8 million for the second half of the year. For 2024, Albany International forecasts total company revenue between $1.22 billion and $1.26 billion, with Adjusted diluted earnings per share anticipated to range from $2.90 to $3.40.

Albany International expects the AEC segment to maintain high-teen EBITDA margins, above peer averages. Updated guidance for 2024 also includes total Adjusted EBITDA projected between $230 million and $250 million, with Machine Clothing revenue expected to be between $740 million and $760 million and AEC revenue projected at $480 million to $500 million.

Analysts Maintain Buy Ratings and Adjust Price Targets

TD Cowen analyst Gautam Khanna maintained a Buy rating while reducing the price target from $95 to $81.
Additionally, Truist Securities analyst Michael Ciarmoli kept a Buy rating but lowered the price target from $101 to $91.

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

Analyst Michael Ciarmoli (TRUIST) currently has the highest performing score on AIN with 5/11 (45.45%) price target fulfillment ratio. His price targets carry an average of $13.67 (17.68%) potential upside. Albany International stock price reaches these price targets on average within 236 days.

Lamb Weston Holdings Reports First Quarter Fiscal 2025 Results and Announces Restructuring Plan

Lamb Weston announced its financial results for the first quarter of fiscal 2025, reporting a diluted earnings per share (EPS) of $0.73, which exceeded analyst expectations by $0.01 and was slightly better than the consensus estimate of $0.72.

Revenue for the quarter reached $1.65 billion, surpassing the consensus estimate of $1.55 billion. Compared to the same period last year, net sales decreased by 1%, income from operations declined by 34%, and net income fell by 46%. Notably, diluted EPS decreased by 45% year-over-year.

The non-GAAP results showed a significant decline in adjusted metrics, including adjusted income from operations, which decreased by 43% to $187 million and adjusted diluted EPS, which fell by 55% to $0.73. Lamb Weston also repurchased $82 million of common stock and paid $52 million in cash dividends to shareholders during this quarter.

To enhance operational efficiency, Lamb Weston is implementing a restructuring plan expected to generate approximately $55 million in pre-tax cost savings and reduce capital expenditures by $100 million in fiscal 2025. Key components of the restructuring include the permanent closure of the Connell, Washington facility, the temporary curtailment of production lines in North America, and a reduction of approximately 4% of the global workforce.

Lamb Weston anticipates recording pre-tax charges between $200 million and $250 million due to these restructuring actions. Looking ahead, Lamb Weston has updated its fiscal year 2025 outlook, reaffirming a net sales target of $6.6 billion to $6.8 billion. However, it has adjusted its EPS guidance downward to a range of $4.15 to $4.35, compared to the consensus estimate of $4.42.

Analysts Upgrade Ratings and Price Targets Amid Restructuring Plans

Barclays analyst Andrew Lazar maintained an Overweight rating and raised the price target from $70 to $74.
Citigroup analyst Thomas Palmer kept a Buy rating, while increasing the price target from $75 to $76.
Wells Fargo analyst Marc Torrente held an Overweight rating and raised the price target from $70 to $77.
Stifel analyst Matthew Smith retained a Hold rating and upgraded the price target from $60 to $65.

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

Analyst Adam Samuelson (GOLDMAN SACHS) currently has the highest performing score on LW with 8/10 (80%) price target fulfillment ratio. His price targets carry an average of $24.99 (47.14%) potential upside. Lamb Weston stock price reaches these price targets on average within 87 days.