Brown-Forman (BF.B) Earns Buy Rating from Pivotal Research

Pivotal Research restated their buy rating on shares of Brown-Forman (NYSE:BF.B) in a research report released on Wednesday. Pivotal Research currently has a $65.00 price target on the stock.

“We see this as pro- growth and as a further investment in the near double-digit growth that B-F has enjoyed in well-developed international markets. EBIT margin at 36.5% fell 140 BP yet was better than estimates (PVTL 34.8%/Street 35.6%) on a decline in SG&A; advertising spending fell 8%. The adjusted tax rate was 19.5%, favorable to our estimate and 830 BP lower than LY. Average diluted shares outstanding were up 0.1%; yet the company repurchase $122 million of its shares in the quarter. FY19 guidance remains $1.65-$1.75 compares to and GAAP EPS of $1.53. Guidance continues to imply 6%-7% underlying FY19 sales growth and the tariffs are assumed to remain. Our estimates remain $1.75 for for FY20. We have trimmed our sales growth slightly, but EBIT margins are a bit higher than previously and tax rate is a bit lower.”,” Pivotal Research’s analyst commented.

BF.B has been the topic of a number of other reports. Zacks Investment Research downgraded Brown-Forman from a hold rating to a sell rating in a report on Wednesday, August 8th. Jefferies Financial Group assumed coverage on Brown-Forman in a report on Friday, September 7th. They issued a hold rating on the stock. Finally, Deutsche Bank lifted their price target on Brown-Forman from $52.00 to $53.00 and gave the company a hold rating in a report on Thursday, August 30th. Two analysts have rated the stock with a sell rating, seven have assigned a hold rating and three have given a buy rating to the company’s stock. The stock currently has an average rating of Hold and a consensus target price of $57.66.

BF.B opened at $46.66 on Wednesday. The firm has a market cap of $22.45 billion, a price-to-earnings ratio of 31.53, a PEG ratio of 3.09 and a beta of 0.85. Brown-Forman has a 52 week low of $45.63 and a 52 week high of $59.58. The company has a current ratio of 3.02, a quick ratio of 1.35 and a debt-to-equity ratio of 1.69.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 2nd. Stockholders of record on Thursday, December 6th will be issued a $0.166 dividend. The ex-dividend date of this dividend is Wednesday, December 5th. This is an increase from Brown-Forman’s previous quarterly dividend of $0.16. This represents a $0.66 dividend on an annualized basis and a dividend yield of 1.42%. Brown-Forman’s dividend payout ratio (DPR) is currently 42.57%.

Brown-Forman Company Profile

Brown-Forman Corporation is a spirit and wine company. The Company manufactures, bottles, imports, exports, markets and sells a range of alcoholic beverages. The Company has a portfolio of approximately 40 spirit, wine and ready-to-drink cocktail (RTD) brands. Its principal brands include Jack Daniel’s Tennessee Whiskey, Jack Daniel’s RTDs, Jack Daniel’s Tennessee Honey, Gentleman Jack Rare Tennessee Whiskey, Jack Daniel’s Tennessee Fire, Jack Daniel’s Single Barrel Collection, Jack Daniel’s Sinatra Select, Jack Daniel’s Winter Jack, Jack Daniel’s No.

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Analyst Recommendations for Brown-Forman (NYSE:BF.B)

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