TD Cowen has maintained its Buy rating on Brown Forman (NYSE:BFb) (NYSE: BF-B) shares, with a consistent price target of $50.00. The affirmation comes despite TD Cowen's adjustments to its sales growth estimates for the company, citing less than robust scanner trends and a challenging read from competitor Diageo (LON:DGE)'s performance.
The firm has revised its forecast for Brown Forman's fiscal year 2025 organic sales growth down to 1.5%, which is below the company's own guidance of 2-4%. This new estimate takes into account the recent data and market trends which suggest potential hurdles for the spirits manufacturer.
In a statement, TD Cowen indicated that while Brown Forman's management might deem it premature to revise their outlook after only one fiscal quarter, the expected reliance on a substantial uptick in sales in the second half of the year could pose a considerable risk. The firm's outlook reflects caution due to the current market indicators and competitive landscape.
Despite the lowered sales growth expectations, TD Cowen's stance on Brown Forman's stock remains positive. The price target of $50.00 suggests confidence in the company's value and prospects, although the market conditions appear to present challenges in the near term.
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