Citi upgrades Constellation Brands to Buy

What happened: Citi upgraded Constellation Brands (STZ) to 'Buy' on March 18, citing undervaluation and a turnaround in progress. STZ, a leading beverage alcohol company, has seen its stock drop 17% over the past year despite owning strong beer brands. The company recently swung to a Q4 profit, increased its dividend, and completed a share repurchase program. Warren Buffett's Berkshire Hathaway holds STZ in its portfolio, and analysts like Jim Cramer have expressed optimism about the company's new CEO and growth prospects.

Market impact: The upgrade and positive analyst sentiments have driven a recovery in STZ's stock price, which has risen 8% since November 2025. The alcoholic beverages sector, particularly beer, is under watch as investors assess STZ's turnaround potential. Competitors like Anheuser-Busch InBev (ABI) and Molson Coors Beverage (TAP) may face increased competition if STZ's turnaround succeeds.

What to watch next: STZ's Q1 2026 earnings report on May 4 will provide insights into the company's ongoing turnaround. Additionally, investors will monitor the progress of STZ's new CEO, Bill Newlands, and his strategic initiatives. Lastly, the performance of STZ's share price around the $175 price target set by Citi will be a key technical level to watch.