Brown-Forman Keeps Neutral Rating, PT Raises to $31 from $28

Brown-Forman Keeps Neutral Rating, PT Raises to $31 from $28

Brown-Forman Corporation (NYSE: BFA, BFB) has maintained its neutral rating, while Price Target (PT) has been revised upward from $28 to $31 by a prominent financial analyst. This move reflects a cautious optimism about the company's ability to navigate near-term challenges while maintaining a focus on shareholder returns.

The analyst's decision to raise the PT comes amidst Brown-Forman's recent dividend affirmation, where the company's Board of Directors approved a regular quarterly cash dividend of $0.2265 per share for both Class A and Class B Common Stock, payable on October 1, 2025 [1]. This move signals the company's commitment to returning capital to shareholders despite ongoing cost pressures and revenue forecasts that suggest a challenging near-term environment.

Brown-Forman's outlook for 2028 projects revenues of $4.1 billion and earnings of $859.2 million, reflecting a 0.9% annual revenue decline and a $9.8 million decrease in earnings from the current $869.0 million [1]. The analyst's PT increase of $31 suggests a 3% upside to the current price, indicating a belief in the company's long-term potential despite the near-term headwinds.

The analyst also noted Brown-Forman's recent expansion into direct distribution efforts, including the launch of its own distribution business in Italy in May 2025. This strategic move aims to give the company greater control over brand positioning and pricing, potentially countering current revenue pressures and mitigating some of the risk from short-term sales declines [1].

Brown-Forman's first quarter of fiscal year 2026 financial results are scheduled for release on August 28, 2025, followed by a conference call to discuss the results at 10:00 a.m. (EDT) [2]. Investors will be closely watching these results to gauge the company's performance and the impact of its strategic initiatives.

References:
[1] https://simplywall.st/stocks/us/food-beverage-tobacco/nyse-bf.b/brown-forman/news/does-brown-formans-bfb-steady-dividend-reveal-its-evolving-a
[2] https://www.businesswire.com/news/home/20250731217708/en/Brown-Forman-First-Quarter-Earnings-Release-and-Conference-Call-Scheduled-for-August-28-2025