- Morningstar sticks with a fair market value of $43 on Brown-Forman (BF.A, BF.B) after analyzing Q2 results.
- "Several factors in the first quarter suggest downside risk, and highlight the lack of margin of safety in the market price," writes the analyst team
- "The company’s Tennessee Fire brand saw double-digit net sales declines in the U.S., following a national roll-out a year ago. The company is still expanding the line extension internationally, but underlying net sales nonetheless fell 2% year-over-year. An inability to successfully drive innovative products could limit the firm’s volume gains, particularly given Jack Daniel’s Tennessee Whiskey volume grew only 2% in the quarter."
- Morningstar has Brown-Forman rated with 2 stars out of five possible.
- Full Morningstar note