Brown-Forman (BF.B) Stock Rating Reaffirmed by Pivotal Research

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Brown-Forman (NYSE:BF.B)‘s stock had its “buy” rating reissued by stock analysts at Pivotal Research in a research report issued on Wednesday. They currently have a $65.00 target price on the stock. Pivotal Research’s target price would indicate a potential upside of 39.31% from the stock’s previous close.

The analysts wrote, “We see this as pro- growth and as a further investment in the near double-digit growth that B-F has enjoyed in well-developed international markets. EBIT margin at 36.5% fell 140 BP yet was better than estimates (PVTL 34.8%/Street 35.6%) on a decline in SG&A; advertising spending fell 8%. The adjusted tax rate was 19.5%, favorable to our estimate and 830 BP lower than LY. Average diluted shares outstanding were up 0.1%; yet the company repurchase $122 million of its shares in the quarter. FY19 guidance remains $1.65-$1.75 compares to and GAAP EPS of $1.53. Guidance continues to imply 6%-7% underlying FY19 sales growth and the tariffs are assumed to remain. Our estimates remain $1.75 for for FY20. We have trimmed our sales growth slightly, but EBIT margins are a bit higher than previously and tax rate is a bit lower.””

Several other analysts have also issued reports on BF.B. Deutsche Bank boosted their price target on Brown-Forman from $52.00 to $53.00 and gave the company a “hold” rating in a report on Thursday, August 30th. Zacks Investment Research raised Brown-Forman from a “sell” rating to a “hold” rating in a report on Friday, August 17th. Finally, Jefferies Financial Group started coverage on Brown-Forman in a report on Friday, September 7th. They set a “hold” rating for the company. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and three have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus price target of $57.66.

Shares of BF.B traded down $2.34 during trading hours on Wednesday, hitting $46.66. The stock had a trading volume of 2,287,264 shares, compared to its average volume of 1,094,585. The company has a debt-to-equity ratio of 1.69, a current ratio of 3.02 and a quick ratio of 1.35. Brown-Forman has a 12 month low of $45.63 and a 12 month high of $59.58. The firm has a market capitalization of $22.96 billion, a P/E ratio of 31.53, a PEG ratio of 3.24 and a beta of 0.85.

About Brown-Forman

Brown-Forman Corporation is a spirit and wine company. The Company manufactures, bottles, imports, exports, markets and sells a range of alcoholic beverages. The Company has a portfolio of approximately 40 spirit, wine and ready-to-drink cocktail (RTD) brands. Its principal brands include Jack Daniel’s Tennessee Whiskey, Jack Daniel’s RTDs, Jack Daniel’s Tennessee Honey, Gentleman Jack Rare Tennessee Whiskey, Jack Daniel’s Tennessee Fire, Jack Daniel’s Single Barrel Collection, Jack Daniel’s Sinatra Select, Jack Daniel’s Winter Jack, Jack Daniel’s No.

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Analyst Recommendations for Brown-Forman (NYSE:BF.B)

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