Will This Price Target Increase Help Brown-Forman (BF.B) Stock Today? (Update)

Update (9:36 a.m.): Updated with Thursday market open information.

NEW YORK (TheStreet) -- Citigroup increased its price target on Brown-Forman  (BF.B) to $105, increased its estimates and set a "buy" rating given the company's continued bourbon growth.

The stock was up 0.21% to $93.34 at 9:35 a.m. on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

----------

Separately, TheStreet Ratings team rates BROWN-FORMAN as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate BROWN-FORMAN (BF.B) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BF.B's revenue growth has slightly outpaced the industry average of 2.9%. Since the same quarter one year prior, revenues slightly increased by 4.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, BF.B has a quick ratio of 1.60, which demonstrates the ability of the company to cover short-term liquidity needs.
  • BROWN-FORMAN has improved earnings per share by 12.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BROWN-FORMAN increased its bottom line by earning $2.74 versus $2.37 in the prior year. This year, the market expects an improvement in earnings ($3.02 versus $2.74).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Beverages industry average, but is less than that of the S&P 500. The net income increased by 12.4% when compared to the same quarter one year prior, going from $157.50 million to $177.00 million.
  • The gross profit margin for BROWN-FORMAN is rather high; currently it is at 69.57%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 22.63% is above that of the industry average.
  • You can view the full analysis from the report here: BF.B Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

If you liked this article you might like

Liquor Sector to See More Consolidation in 2018

Liquor Sector to See More Consolidation in 2018

Drink to the Bullish Charts of Brown-Forman

Drink to the Bullish Charts of Brown-Forman

Winemaker Stocks Dip as Deadly Napa Wildfires Blaze On

Winemaker Stocks Dip as Deadly Napa Wildfires Blaze On

This Whiskey Maker Just Did Something It Hasn't Done in Six Years

This Whiskey Maker Just Did Something It Hasn't Done in Six Years

The Stock Price of the World's Largest Liquor Maker Has Gone Haywire -- Here's What We Know

The Stock Price of the World's Largest Liquor Maker Has Gone Haywire -- Here's What We Know