Valued at a market cap of $16.9 billion, Brown-Forman Corporation (BF.B) manufactures, distills, bottles, imports, exports, markets, and sells various alcoholic beverages. The Louisville, Kentucky-based company provides wines, whiskey spirits, whiskey-based flavored liqueurs, ready-to-drink cocktails, ready-to-pour products, vodkas, tequilas, gin, brandy, rum, bourbons, and liqueurs under various brands including Jack Daniel's, Woodford Reserve, Old Forester, Coopers' Craft, and Gentleman Jack to name a few. 

This distillery company has considerably lagged behind the broader market over the past 52 weeks. Shares of Brown-Forman have declined 26.5% over this time frame, while the broader S&P 500 Index ($SPX) has soared 12.5%. Moreover, on a YTD basis, the stock is down 6.1%, compared to SPX’s 1.4% return. 

Narrowing the focus, BF.B has also underperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) 5.2% rise over the past 52 weeks and 4.7% uptick on a YTD basis. 

On Mar. 5, shares of Brown-Forman surged 10.1% after its Q3 earnings release. Although the company's reported revenue declined 3.2% year-over-year to $1 billion, mainly due to the divestitures of Finlandia and Sonoma-Cutrer, its organic revenue showed growth compared to the same period last year. Moreover, its EPS fell 5% from the year-ago quarter to $0.57 but notably came in 21.3% above Wall Street estimates. Looking ahead, the company reaffirmed its fiscal 2025 guidance, projecting organic net sales growth to be between 2% and 4%.

For the current fiscal year, ended in April, analysts expect BF.B’s EPS to decline 15.4% year over year to $1.81. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion. 

Among the 17 analysts covering the stock, the consensus rating is a “Hold” which is based on four “Strong Buy,” nine “Hold,” one “Moderate Sell,” and three “Strong Sell” ratings. 

This configuration is slightly more bullish than two months ago, with three analysts suggesting a “Strong Buy” rating. 

On Apr. 23, Truist Financial Corporation (TFC) maintained a “Hold” rating on BF.B and lowered its price target to $35. 

The mean price target of $40.06 represents a 12.4% premium from BF.B’s current price levels, while the Street-high price target of $57.50 suggests an upside potential of 61.3%.