Is BF-B a good stock to buy? We came across a bullish thesis on Brown-Forman Corporation on Eden Bradfield Research’s Substack. In this article, we will summarize the bulls’ thesis on BF-B. Brown-Forman Corporation’s share was trading at $27.96 as of June 26th. BF-B’s trailing and forward P/E were 18.27 and 16.16 respectively according to Yahoo Finance.
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Brown-Forman Corporation, together with its subsidiaries, manufactures, distills, bottles, imports, exports, markets, and sells a variety of alcohol beverages. BF-B is presented as a compelling takeover candidate whose current valuation fails to reflect the enduring strength of its premium whiskey portfolio, family-controlled ownership, and resilient long-term earnings power.
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The company remains one of the highest-quality businesses in the global spirits industry, generating superior returns on invested capital compared with larger peers despite facing a cyclical slowdown in alcohol demand.
Earlier speculation centered on a potential acquisition by Pernod Ricard, but such a transaction appears difficult given Pernod’s leverage, likely shareholder dilution, and the Brown family’s desire to preserve its legacy, maintain governance influence, and structure any transaction primarily as an all-stock deal to minimize taxes. A more attractive strategic partner has now emerged in privately held Sazerac, whose family ownership, deep bourbon heritage, disciplined management, and long-term investment philosophy closely align with Brown-Forman’s culture.
Combining the companies would create a spirits powerhouse with nearly $10 billion in revenue while preserving family stewardship through a partnership or merger that could keep voting control with the Brown and Goldring families. Although regulatory scrutiny and competing bids, particularly from Pernod Ricard, remain possible, the board would ultimately need to evaluate any superior proposal on behalf of all shareholders.
The existence of multiple interested parties reinforces the view that Brown-Forman is materially undervalued, with the author maintaining that the business is worth well above $40 per share. Even if a transaction takes time to materialize, the company’s iconic brands, steady demand, and strategic appeal create a favorable risk-reward profile, while the prospect of a competitive bidding process provides a meaningful catalyst for a significant rerating.
Previously, we covered a bullish thesis on Brown-Forman Corporation (BF-B) by Oliver | MMMT Wealth in March 2025, which highlighted its discounted valuation, resilient fundamentals, and long-term dividend growth despite industry headwinds. BF-B’s stock price has depreciated by approximately 22.31% since our coverage. Eden Bradfield Research shares a similar view but emphasizes on the company’s takeover potential and value-unlocking acquisition catalysts.
Brown-Forman Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held BF-B at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the risk and potential of BF-B as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BF-B and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
