President Donald Trump’s tariff plans could put pressure on Constellation Brands , according to Piper Sandler. The firm downgraded the alcoholic beverage producer to neutral from overweight and lowered its price target to $200 per share from $245. Piper Sandler’s forecast implies about 11% upside from Friday’s $180.80 close. Trump over the weekend slapped a 25% levy on imports from Mexico and Canada, along with a 10% duty on Chinese goods. Canada reacted with retaliatory tariffs of its own, while Mexico said it would explore duties on U.S. imports. Constellation Brands imports Mexican beers Modelo, Corona and Pacifico, meaning these levies could put pressure on the company’s revenue. “We update our model to include a F1Q26 margin hit accordingly. However, if these tariffs lasted a full fiscal year, we recognize a potential $3.00-3.75 hit to F26E EPS, though potential pricing and volume headwinds make it difficult to estimate,” Michael Lavery said. The analyst added that Constellation could be one of the more patient players in the sector by not jumping to raise prices immediately. “Pricing may also provide an offset, but taking pricing is challenging (and difficult to assess) given that key competitors like TAP and BUD (not covered) produce in the US where no tariff cost applies,” he added. “For now, we assume STZ may wait to take pricing until it has better clarity on the duration of these tariffs.” STZ 1Y mountain Constellation Brands. Shares were more than 5% lower in the premarket on Monday. The stock has also been under pressure over the past year, losing 27%.
#Modelo #importer #Constellation #Brands #downgrade #Piper #Sandler #U.S #tariffs
