Regarding the impact of Mexican tariffs on the performance of the constellation Brands (STZ.US), RBC has lowered the target price to $289.

RBC Capital maintains an "outperform" rating on Constellation Brands (STZ.US) stock, with a target price lowered from $293 to $289. The bank stated in a research report that although the company has fulfilled most of its promises, achieved shareholder-friendly capital allocation, has beer revenue growth of 7%-9% and industry-leading profit margins, and has significantly improved its shareholder structure, the stock price has remained flat over the past five years. The bank also added that the company is currently facing too many unfavorable factors, which will manifest in poor performance and potentially lower mid-term beer revenue forecasts for the company. Constellation Brands is engaged in the production, marketing, and distribution of beer, wine, and spirits. The company owns several well-known brands, including Corona, Modelo, and Kim Crawford. The main source of revenue for Constellation Brands is beer (contributing over 80% of revenue), with all its beer imported from Mexico. However, Trump's announcement of tariffs on Mexican imports has led to market expectations of increased sales costs for Constellation Brands. If Constellation Brands raises beer prices to offset costs, inflation-hit American consumers may turn to other cheaper beer brands. Amid tariff concerns, Constellation Brands' stock price has dropped nearly 14% year-to-date. The company will announce its fourth-quarter and full-year financial performance for the fiscal year ending February 28, 2025, after the U.S. market close on April 9th. The company's third-quarter financial report released in January showed net sales of $2.46 billion, below market expectations of $2.53 billion; adjusted earnings per share were $3.25, below market expectations of $3.31. Additionally, the company revised its guidance for the fiscal year 2025, forecasting annual net sales growth of 2% to 5%, compared to the previous expectation of 4% to 6%; and adjusted earnings per share for fiscal year 2025 are expected to be between $13.40 and $13.80, compared to the previous expectation of $13.60 to $13.80.