Brown-Forman rallies after Exane starts at Buy on bottoming spirits demand

As previously reported, Exane BNP Paribas analyst Kevin Grundy initiated coverage of Brown-Forman (BF.B) with an Outperform rating and $48 price target. The stock in afternoon trading is up 3% to $42.77. The firm believes the spirits industry is likely nearing a bottoming of demand trends. Brown’s tariff risk is “manageable” even though it’s higher than most other consumer packaged goods companies, the analyst told investors in a research note. Exane believes the stock’s valuation creates an attractive entry point. The firm also initiated coverage of Constellation Brands (STZ) and Molson Coors (TAP) with Neutral ratings and price targets of $261 and $64, respectively.