Goldman Sachs reported on Friday that they have downgraded alcoholic beverage company, Brown-Forman Corporation(BF-B) to a “Sell”.
The firm announced that they have downgraded BF-B from “Neutral” to a “Sell,” but have increased its price target from $63 to $65. This price target suggests an 8% decline from the stock’s current price of $70.14.
Analysts believe that although the company looks positive on a long term basis, shares that are currently trading are at the top of the valuation range. The firm sees a risk of BF-B seeing a second quarter miss, estimating EPS of 73 cents, compared with the consensus estimate of 78 cents.
Brown-Forman shares were mostly flat during premarket trading Friday. The stock is down -12.32% YTD.
The Bottom Line
Shares of Brown-Forman (BF-B) have a 1.45% dividend yield, based on last night’s closing stock price of $70.14. The stock has technical support in the $66-$67 price area. The stock is trading near all-time highs.
Brown-Forman Corporation(BF-B) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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