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

Brown-Forman Corporation (NYSE:BF-B) is included among the 13 Best Defensive Dividend Stocks for 2025.

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On March 5, Morgan Stanley lowered its price recommendation on Brown-Forman Corporation (NYSE:BF-B) to $27 from $29. The firm reiterated an Underweight rating on the shares. The analyst argued that structural headwinds in the alcohol industry, an oversupply of American whiskey, and the prospect of stronger competitive pressure are weighing on the company’s outlook. At the same time, rising costs are adding to what the firm views as a difficult topline environment.

During the earnings call for fiscal Q2 2026, CEO Lawson Whiting said reported net sales for the first nine months declined 2%. After adjusting for certain items, organic net sales were essentially flat over the same period. He noted that growth remained strong in emerging international markets, which rose 15%. Travel Retail sales increased 7%, supported largely by performance in Mexico and Brazil.

Whiting also pointed to the launch of Jack Daniel’s Tennessee Blackberry in the US and Europe. He said the product ranked as the second-largest new offering by value across the total distilled spirits category based on Nielsen data. He also mentioned the U.S. debut of New Mix, saying it could develop into another growth driver and noting that early results appeared to be off to a strong start. The CEO added that the company ended its partnership with Pabst Brew & Company for Jack Daniel’s Country Cocktails. He said the decision was part of a broader effort to bring the strategy for the flavored malt beverage portfolio under a more centralized direction.

Brown-Forman Corporation (NYSE:BF-B) manufactures, distills, bottles, imports, exports, markets, and sells a range of beverage alcohol products under various brands. The company has built a portfolio of more than 40 brands across spirits, ready-to-drink (RTD) cocktails, and wine.

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