Pivotal Research Reaffirms Buy Rating for Brown-Forman (BF.B)

Pivotal Research reaffirmed their buy rating on shares of Brown-Forman (NYSE:BF.B) in a research report report published on Wednesday morning. The brokerage currently has a $65.00 price objective 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.”,” the firm’s analyst wrote.

BF.B has been the subject of a number of other reports. Zacks Investment Research downgraded Brown-Forman from a hold rating to a sell rating in a research note on Wednesday, August 8th. Jefferies Financial Group started coverage on Brown-Forman in a research note on Friday, September 7th. They set a hold rating for the company. Finally, Deutsche Bank increased their target price on Brown-Forman from $52.00 to $53.00 and gave the stock a hold rating in a research note on Thursday, August 30th. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and three have given a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and an average target price of $59.92.

Shares of BF.B stock opened at $45.93 on Wednesday. The company has a market cap of $22.51 billion, a PE ratio of 31.03, a price-to-earnings-growth ratio of 3.09 and a beta of 0.85. Brown-Forman has a 12-month low of $45.62 and a 12-month high of $59.58. The company has a quick ratio of 1.35, a current ratio of 3.06 and a debt-to-equity ratio of 1.53.

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 2nd. Investors of record on Thursday, December 6th will be paid a $0.166 dividend. This is an increase from Brown-Forman’s previous quarterly dividend of $0.16. This represents a $0.66 annualized dividend and a yield of 1.45%. The ex-dividend date is Wednesday, December 5th. Brown-Forman’s dividend payout ratio (DPR) is presently 44.59%.

About Brown-Forman

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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