Brown-Forman (BF.B) Downgraded by Zacks Investment Research

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Zacks Investment Research cut shares of Brown-Forman (NYSE:BF.B) from a buy rating to a hold rating in a report released on Monday morning.

According to Zacks, “Brown-Forman surpassed the industry in the past month backed by robust earnings surprise trend that continued in third-quarter fiscal 2019. Notably, the company has reported earnings beat for seven consecutive quarters. Moreover, underlying sales improved for the 10th straight quarter in fiscal third quarter owing to broad-based growth across geographies and balanced contribution from its portfolio of brands. Further, the company is confident of capitalizing on its American Whiskey strategy while benefiting from investments in its brands’ portfolio. However, tariff-related costs continued to hurt gross margins in the fiscal third quarter, which is likely to continue in the fiscal fourth quarter. Further, underlying net sales began witnessing the pinch of tariff-costs in the fiscal third quarter, in addition to prior impacts on cost of sales and gross margin. Additionally, unfavorable currency rates remain a headwind.”

A number of other research firms have also commented on BF.B. Goldman Sachs Group lowered shares of Brown-Forman from a neutral rating to a sell rating in a report on Tuesday, January 8th. Pivotal Research reiterated a buy rating and set a $65.00 price target on shares of Brown-Forman in a report on Wednesday, December 5th. UBS Group began coverage on shares of Brown-Forman in a report on Thursday, December 13th. They set a neutral rating and a $48.00 price target for the company. Jefferies Financial Group reiterated a hold rating and set a $47.00 price target on shares of Brown-Forman in a report on Thursday, December 13th. Finally, ValuEngine lowered shares of Brown-Forman from a buy rating to a hold rating in a report on Tuesday, January 15th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and two have assigned a buy rating to the stock. Brown-Forman currently has an average rating of Hold and a consensus target price of $54.33.

Shares of BF.B opened at $50.17 on Monday. The company has a market capitalization of $24.08 billion, a PE ratio of 33.90, a price-to-earnings-growth ratio of 3.21 and a beta of 0.67. The company has a debt-to-equity ratio of 1.53, a current ratio of 3.06 and a quick ratio of 1.41. Brown-Forman has a fifty-two week low of $44.57 and a fifty-two week high of $59.58.

Brown-Forman (NYSE:BF.B) last announced its quarterly earnings data on Wednesday, March 6th. The company reported $0.47 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.44 by $0.03. The firm had revenue of $904.00 million during the quarter, compared to analyst estimates of $910.71 million. Brown-Forman had a net margin of 21.01% and a return on equity of 57.47%. The business’s quarterly revenue was up 3.0% on a year-over-year basis. During the same period in the previous year, the business posted $0.44 EPS. Equities research analysts expect that Brown-Forman will post 1.69 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Monday, April 1st. Investors of record on Monday, March 4th will be issued a dividend of $0.166 per share. The ex-dividend date of this dividend is Friday, March 1st. This represents a $0.66 dividend on an annualized basis and a yield of 1.32%. Brown-Forman’s dividend payout ratio is currently 44.59%.

Brown-Forman Company Profile

Brown-Forman Corporation manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages worldwide. It provides spirits, wines, ready-to-drink cocktails, whiskeys, vodkas, tequilas, champagnes, brandy, and liqueurs. The company offers its products primarily under the Jack Daniel's, Gentleman Jack, Woodford Reserve, Korbel, Finlandia, el Jimador, Herradura, Sonoma-Cutrer, Canadian Mist, GlenDronach, BenRiach, Glenglassaugh, Chambord, Old Forester, Early Times, Pepe Lopez, Antiguo, Slane Irish, and Coopers' Craft brands.

See Also: Growth Stocks

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