Brown-Forman (BF.B, BF.A) is facing a more constructive view on the back of better-than-expected fiscal Q4 results and a well-supported fiscal 2027 outlook, with balanced risk-reward and improving cash returns, BofA Securities said in a Monday note.
The firm said fiscal 2027 guidance for approximately flat sales looks underpinned, which reduces the risk of further earnings downgrades.
Brown-Forman continues to show strength in emerging markets, including Brazil, Mexico and Turkiye, along with continued outperformance in the US, BofA said.
Fiscal 2027 will no longer face the drag from Canada and non-branded products, which weighed on fiscal 2026 growth, the firm said.
BofA upgraded Brown-Forman to neutral from underperform and raised its price target to $28 from $26.50.