Latest news with #Ottenstein
Business Insider
6 days ago
- Business
- Business Insider
Analysts' Top Consumer Goods Picks: Treasury Wine Estates Limited (TSRYF), Procter & Gamble (PG)
There's a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on Treasury Wine Estates Limited (TSRYF – Research Report) and Procter & Gamble (PG – Research Report) with bullish sentiments. Confident Investing Starts Here: Treasury Wine Estates Limited (TSRYF) In a report released today, Belinda Moore from Morgans maintained a Buy rating on Treasury Wine Estates Limited, with a price target of A$11.06. The company's shares closed last Monday at $4.90. According to Moore is a 3-star analyst with an average return of 5.2% and a 55.3% success rate. Moore covers the Basic Materials sector, focusing on stocks such as Nufarm Limited, Orica Limited, and Incitec Pivot. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Treasury Wine Estates Limited with a $7.70 average price target, implying a 57.1% upside from current levels. In a report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a A$13.20 price target. Procter & Gamble (PG) Evercore ISI analyst Robert Ottenstein maintained a Buy rating on Procter & Gamble yesterday and set a price target of $190.00. The company's shares closed last Tuesday at $166.85. According to Ottenstein is a 3-star analyst with an average return of 1.1% and a 54.7% success rate. Ottenstein covers the Consumer Goods sector, focusing on stocks such as Coca-Cola Europacific Partners, Anheuser-Busch Inbev Sa, and Constellation Brands. Currently, the analyst consensus on Procter & Gamble is a Moderate Buy with an average price target of $171.56.
Business Insider
28-05-2025
- Business
- Business Insider
Is Coca-Cola Stock (KO) a Buy In 2025?
Coca-Cola (KO) stock is a top performer in the consumer defensive segment. This may have some investors wondering if the soda stock is worth buying as inflation, tariffs, and other economic concerns weigh on the market. Confident Investing Starts Here: The good news for Coca-Cola shareholders is that the company's stock has managed to avoid falling due to market pressure. That's resulted in a 16.02% increase for KO stock year-to-date. For perspective, the S&P 500 (SPX) has dropped 1.34%, the Dow Jones Industrial Average (DJIA) has fallen 2.21%, and the Nasdaq 100 (NDX) has decreased 0.46% since the start of the year. KO stock has taken a break from its 2025 rally today, with the shares down 0.11% as of this writing. Investors might consider buying the stock on the dip, or waiting for a larger one before taking a stake in the beverage company. Recent KO Stock Analyst Coverage The strong 2025 performance of Coca-Cola stock has attracted recent bullish coverage from analysts. That includes Evercore ISI analyst Robert Ottenstein, who reiterated a Buy rating and $80 price target for KO stock, suggesting a potential 11.53% upside for the shares. Ottenstein isn't even the most bullish analyst that has covered KO stock in 2025. The high forecast for the shares is $86, implying a possible 19.89% upside. On the flip side, the most bearish price target is $70, which would represent a 2.41% downside. Is KO Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for Coca-Cola is Strong Buy, based on 15 Buy and one Hold ratings over the past three months. With that comes an average KO stock price target of $79.33, representing a potential 10.6% upside for the shares.
Yahoo
17-03-2025
- Business
- Yahoo
How much Trump's liquor tariffs could cost 2 giant liquor producers
The bottom-line outlook is more than just a little blurry for liquor makers if a trade war on alcohol commences. Trump has threatened a 200% tariff on European wine, champagne, and spirits if the European Union moves forward with a 50% tariff on American whiskey. The EU's tariff was unveiled in response to new steel and aluminum tariffs by the Trump administration and is expected to go into effect on April 1. Liquor giants Brown-Forman (BF-B) and Diageo (DEO) have a lot to lose if the situation escalates. Jack Daniels and Woodford Reserve whiskey maker Brown-Forman could see $0.36 per share in earnings wiped out if the EU's tariffs on whiskey go into effect, Evercore analyst Robert Ottenstein estimated in a new note on Monday. Brown-Forman sources about 20% of its sales from the EU and UK, with an 80%/20% split between the two regions. Read more: What Trump's tariffs mean for the economy and your wallet Not helping Brown-Forman is that it gets 7% of its sales from Mexico and 1% of its sales from Canada — a 25% tariff applied to both countries could hit earnings per share by $0.07. "We are pleased that [European Union] President von der Leyen and Trade Commissioner Šefčovič expressed a desire to negotiate with the U.S. and are hopeful the two sides will reach a constructive resolution before the tariffs take effect on April 1. The tariff conversation is bigger than Brown-Forman and our industry, and it's evolving rapidly," a Brown-Forman spokesperson told Yahoo Finance. Things aren't much brighter for Johnny Walker scotch producer Diageo, which had already been struggling fundamentally in the lead-up to the trade war. Diageo has said about 9% of its US sales is scotch. Ketel One and Tanqueray, made in Europe, represent 5% of sales, Ottenstein estimates. The company stands to lose $0.04 a share for every 25% tariff applied. A 200% tariff on European-made alcohol would wallop Diageo to the tune of $0.28. Similar to Brown-Forman, Diageo is exposed to tariffs on Canada and Mexico. Roughly 45% of the company's US sales come from Canada (mostly Crown Royal) and Mexico (tequila). Assuming the company could mitigate some of the blow by changing supply chains and price hikes, Ottenstein thinks Diageo's earnings per share would be hit by $0.04. Ottenstein also laid out several factors that could weigh on each company besides the raw application of tariffs: Boycotts or the removal of non-domestic brands from shelves could drive more significant headwinds for liquor makers. Reports from Canada suggest that some consumers are avoiding American-made alcohol. The spirits pricing environment is "fragile," which could make it difficult for liquor makers to offset tariffs. Beer could benefit as its relative affordability rises compared to tariffed spirits and wine. Shares of the liquor giants have begun to price in potential severe tariff-related headwinds. Brown-Forman and Diageo shares have shed 21% and 17% in the past three months, respectively, according to Yahoo Finance data. Listen: Sen. Ted Cruz on Texas tariff impact Investors keen on playing the alcohol space as a defensive trade in an uncertain broader market have rotated into beer names. Beer companies such as Sam Adams and Budweiser are seen as having less relative exposure to the trade than liquor makers. Anheuser-Busch InBev (BUD) shares and Boston Beer (SAM) are up 24% and 4% year to date. Soda giant Coca-Cola (KO) has also caught a bid, with shares up 11% this year. Rival PepsiCo (PEP) has outperformed the liquor makers as well, with its stock only down 2% on the year. Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
Why Mexico Trump tariffs could hammer this beer giant
It could be a dry summer for the bottom line of beer giant Constellation Brands (STZ) thanks to President Donald Trump. Trump went through with his long-threatened tariffs on Mexico and Canada on Tuesday. Starting just after midnight, imports from Canada and Mexico will now be taxed at 25%. This is bad news for the beer industry as more than 80% of US beer imports are estimated to come from Mexico. Companies in the sector are now faced with a one-two punch of raising prices, which could stunt demand, and increasing production costs. Listen: Trump tariffs may trigger stagflationary shock No beer player arguably has more at stake in Trump's trade war than Corona and Modelo maker Constellation Brands. For starters, Modelo beers are exclusively brewed in Mexico. The company also imports Corona beer from Mexico. Each brand has seen strong sales in the past two years, helping to offset persistently weak sales in Constellation Brands' wine business. Constellation Brands operates two breweries in Mexico, located in Nava, Coahuila, and Ciudad Obregón, Sonora. It's building a third in Veracruz. Evercore analyst Robert Ottenstein estimates that about 99% of the company's beer is imported from Mexico. "While we can't speculate on the duration of the currently imposed tariffs, we continue to assess opportunities to help manage impacts to our business in the near and longer term to the extent we are able," Constellation said in a statement to Yahoo Finance. "Additionally, we continue to work with all levels of government in both the U.S. and Mexico to ensure the perspective of our business and key stakeholders are represented and considered in policy decisions, with the hope that this situation can be resolved quickly." Recent research from Ottenstein projects a $3.50 per share hit to Constellation's earnings in a 25% Mexico tariff situation, without any offsets such as price increases, cost cuts, and stock buybacks. If Constellation is able to execute on some of these tariff offsets, the earnings hit could still be a lofty $2.40 a share. Ottenstein is hopeful Constellation Brands won't see the worst-case profit scenario happen. "We also note that we believe Constellation Brand would have the ability to have distributors help absorb some of the incremental costs, which is not contemplated in the below, nor are additional productivity programs," Ottenstein said. Meanwhile, Constellation risks generating a lower-than-expected return on its latest capital investments should Trump's trade war go on. During fiscal year 2024, Constellation Brands spent over $900 million on expanding beer manufacturing capacity in Mexico while building the aforementioned new plant in Veracruz. The company said in its latest annual report it expects to spend $3 billion from fiscal year 2025 through fiscal year 2028 to finish the Veracruz plant and expand Mexico operations. The Veracruz plant's initial buildout phase is expected to be completed by late fiscal year 2026 or 2027. "We're nearing the end of our large commitments as it relates to brewery expansion in Mexico," Constellation Brands CFO Garth Hankinson said on a January earnings call when asked if Constellation would scale back investments in the country given the economic climate. The company didn't entirely rule out dialing down expansion plans in Mexico. Watch: Trump tariffs may drill retailers Ultimately, the tariff news couldn't come at worse time for Constellation Brands. Despite getting a boost in February from a disclosure that Warren Buffett's Berkshire Hathaway (BRK-B) has taken a stake, Constellation's stock is down 21% year to date. Shares are down 30% in the past year. Shares were hammered in January as the company missed sales and earnings estimates and cut guidance. The stock trades on one of the lowest forward price-to-earnings multiples in the beverage industry at 11.7 times, according to Yahoo Finance data. Other forward P/E multiples of similar companies: Coca-Cola (KO): 25 times PepsiCo (PEP): 18.5 times Keurig Dr Pepper (KDP): 16.8 times Anheuser-Busch InBev (BUD): 16.6 times Diageo (DEO): 15 times Molson Coors (TAP): 9.6 times "We continue to expect Constellation to be a secular market share winner, yet we are cognizant of the persistent headwinds to the beer and broader alcohol category, leading to reduced alcohol consumption. Risk from Mexican beer import tariffs and potential implications to consumption from tighter immigration policy," said JPMorgan analyst Andrea Teixeria following the company's latest earnings. Teixeria slashed her rating to Neutral from Overweight. Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Sign in to access your portfolio
