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Evercore Reaffirms Buy on Constellation Brands as Brand Loyalty Strengthens

Brand loyalty gains, a potential Berkshire stake, plus a consensus upside near 20% bolster the contrarian case.

Overview

  • Evercore ISI kept a Buy rating with a $170 price target after Q2, highlighting clearer loyalty metrics and improved traction in the Corona portfolio.
  • Constellation reported Q2 FY2026 adjusted EPS of $3.63, topping estimates by $0.22, while revenue of about $2.48 billion came in slightly light.
  • Management and CEO Bill Newlands flagged stronger loyalty for Corona and Modelo, with Corona Familiar cited as a top share gainer in the category.
  • A Seeking Alpha author reported a roughly $2 billion Berkshire Hathaway investment and pointed to a 2.9% dividend yield as part of a bullish long-term thesis.
  • Recent analysis notes softer demand but stabilizing trends, lean inventories, and cost actions that could set up improvement through FY2026 and into FY2027.