Brown-Forman (BF-B) Faces Pressure as Morgan Stanley Lowers Price Target to $27

Group 1: Company Performance and Outlook - Morgan Stanley has lowered its price target for Brown-Forman Corporation to $27 from $29, maintaining an Underweight rating due to structural headwinds in the alcohol industry and rising costs impacting the company's outlook [1] - For fiscal Q2 2026, Brown-Forman reported a 2% decline in net sales for the first nine months, with organic net sales remaining essentially flat [2] - Growth in emerging international markets was strong, with a 15% increase, and Travel Retail sales rose by 7%, driven by performance in Mexico and Brazil [2] Group 2: Product Developments and Strategic Changes - The launch of Jack Daniel's Tennessee Blackberry in the US and Europe has been successful, ranking as the second-largest new offering by value in the distilled spirits category according to Nielsen data [3] - The U.S. debut of New Mix is expected to be another growth driver, with early results showing strong performance [3] - Brown-Forman ended its partnership with Pabst Brew & Company for Jack Daniel's Country Cocktails to centralize the strategy for its flavored malt beverage portfolio [3] Group 3: Company Overview - Brown-Forman Corporation manufactures, distills, bottles, imports, exports, markets, and sells a variety of beverage alcohol products under over 40 brands, including spirits, ready-to-drink cocktails, and wine [4]