Piper Sandler Cuts Price Target on Constellation Brands (STZ) as it Faces Headwinds From GLP-1 Weight Loss Drugs

Constellation Brands, Inc. (NYSE:STZ) ranks among the best sin stocks to buy in 2026. On November 21, Piper Sandler cut its price target for Constellation Brands, Inc. (NYSE:STZ) to $135 from $155 while keeping a Neutral rating for the alcohol company. The firm cited increasing strain from GLP-1 weight loss pharmaceuticals as a major reason for the downgrading, stating that recent price cuts for these prescriptions have likely encouraged consumer uptake. According to Piper Sandler, this tendency might produce an extra 30-70 basis point annual headwind for US alcohol sales, compounding beer’s existing negative 4.7% category trend.

Antonio Gravante / Shutterstock.com

The firm also cited higher alcohol by volume beverages as another hurdle, which might result in a percentage point or higher of volume strain, with additional category innovation predicted in this market.

As a consequence, Piper Sandler reduced its estimate of beer volume growth by around 1.0 percentage points for Constellation’s fiscal fourth quarter of 2026, and by roughly 1.5 percentage points every quarter starting with the fiscal first quarter of 2027.

Constellation Brands, Inc. (NYSE:STZ) indicated in September that it will reduce its full fiscal year guidance owing to a “challenging macroeconomic environment,” cutting its comparable earnings per share expectation to $11.30 to $11.60, down from $12.60 to $12.90. The company also stated that it expects organic net sales to shrink 4% to 6% in fiscal 2026, down from a previous estimate of 1% growth to 2% drop.

Constellation Brands, Inc. (NYSE:STZ) produces beer, wine, and spirits, operating famous brands such as Corona, Modelo, Robert Mondavi Winery, and Kim Crawford, among others.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.