Piper Sandler downgrades Constellation Brands over new tariffs

On February 3, 2025, the financial firm Piper Sandler announced a downgrade of Constellation Brands from overweight to neutral, significantly lowering its price target for the company's stock. This decision comes as President Donald Trump imposed new tariffs on imports from Mexico and Canada, affecting the alcoholic beverage producer due to its importation of popular Mexican beers such as Modelo and Corona. The immediate financial repercussions resulted in a drop of over 5% in Constellation's shares ahead of the market opening. As a result of these tariff changes, analysts at Piper Sandler predict potential earnings per share losses for the fiscal year ending in 2026, suggesting a possible reduction between $3.00 and $3.75 per share.