BMO has cut its price target on Brown Forman ( BF.A ) to $56 from $70 while keeping its market perform rating, with worries over possible tariff wars weighing on its recent solid sales growth.
"BF's solid growth outlook in international markets is now, at least partially, exposed to risk from potential retaliatory tariffs on bourbon/Tennessee whiskies by the EU/Canada in response to the proposed steel/aluminum tariffs," BMO analyst Amit Sharma said in a note.
"Given the incremental top-line risk, coupled with BF's top-shelf valuation (1000-1100 bps premium to spirits-peers), we stay on the sidelines."
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