Constellation Earnings: Share Gains Persist as Consumers Find Favor With Premium Beer Segment

Despite continued inflationary pressure, wide-moat Constellation Brands delivered solid fiscal 2024 first-quarter results that tracked largely in line with our expectations. However, we plan to raise our $274 fair value estimate by a low-single-digit percentage to account for time value. With the shares trading at a 10% discount to our fair value estimate, we suspect investors undervalue Constellation’s advantageous position in the upscale beer category, supported by premiumization trends and strong distributor relationships.