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BF-BBrown Forman IncHold5.2·$26.50+2.95%
HoldModerate Confidence
Investment thesis

A well-run consumer defensive business with 18% operating margins and a near-perfect Piotroski financial-health score, but the stock has moved above its near-term technical target — presenting negative net upside — while 3 of the past 4 quarterly earnings reports were misses including the most recent; the setup favors patience rather than fresh exposure.

Thesis pillars

  • High Short Interest Bearish SignalStable
  • Quality Franchise At Stretched MultipleStable
  • Price Above Technical TargetStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

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Brown Forman Inc (BF-B) Stock Analysis

Range Bound setup

HoldQualityModerate Confidence

Consumer Defensive · Beverages - Wineries & Distilleries

Hold if already holding. Not a fresh buy at $26.50, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Weak growth.

Brown-Forman makes and sells spirits and wine across brands including Jack Daniel's Tennessee Whiskey, Woodford Reserve, Old Forester, Herradura and el Jimador tequilas, and Chambord, distributed in over 170 countries. The United States remains its largest market at 44% of... Read more

$26.50-4.0% A.UpsideScore 5.2/10#1 of 3 Beverages - Wineries & Distilleries
QualityF-score8 / 9FCF yield5.64%
IncomeYield3.59%(5y avg 1.96%)Payout59.32%sustainable
Stop $24.90Target $28.48(resistance)A.R:R -0.7:1
Analyst target$28.26+6.6%17 analysts
$28.48our TP
$26.50price
$28.26mean
$20
$35

Hold if already holding. Not a fresh buy at $26.50, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Weak growth. Chart setup: RSI 45 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Score 5.2/10, moderate confidence.

Passes 6/9 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 76d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

10-K grounded · weekly refresh

About Brown Forman Inc

About Brown Forman Inc

Brown-Forman sells spirits and wine under brands including Jack Daniel's Tennessee Whiskey, Woodford Reserve, Old Forester, Herradura and el Jimador tequilas, and Chambord across more than 170 countries. The United States, its most important market, accounted for 44% of net sales in fiscal 2025, down from 47% two years earlier, while its two largest customers represented approximately 13% and 11% of consolidated net sales.

Brown-Forman earns revenue primarily by selling branded spirits and wine to distributors, who then sell to retail customers and consumers — in the United States, alcohol regulation generally bars manufacturers from selling directly to consumers, so the company sells through distributors or, in control states, directly to state governments. Outside the United States, Brown-Forman operates owned distribution companies in markets including Australia, Germany, Japan, Mexico, South Korea, and the United Kingdom, launching its own Italian distribution organization in May 2025, while relying on third-party distributors under fixed-term contracts elsewhere and selling to provincial governments in Canada. The company ended its contract to sell, market, and distribute Korbel, a brand it does not own, effective June 30, 2025. Growth strategy centers on fast-growing spirits categories, product and packaging innovation, and expanding e-commerce and digital marketing, particularly in the U.S. market that remains central to long-term results.

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Brown-Forman's structural distribution model is shifting toward direct control: the company already owns distribution companies in sixteen named markets including Mexico, Germany, and the United Kingdom, and added Italy to that list in May 2025, replacing third-party distributor relationships with direct sales to retailers and wholesalers. That shift reduces reliance on external distribution partners in owned markets, even as the company's customer base remains diffuse — no single customer accounted for 10% or more of consolidated net sales in fiscal 2025 apart from its two largest, at 13% and 11%, respectively — leaving the U.S. market's declining but still-dominant 44% share of net sales as the more material concentration to watch.

See also: Consumer Defensive · Beverages - Wineries & Distilleries

From Brown Forman Inc's most recent 10-K filing, extracted August 30, 2026.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Dec 3, 202676d to earnings· next earnings call

Thesis

Rewards
V7 quality resilience bonus: +0.2 (Q=7.8 in RISK_OFF)
Sector modifier (Consumer Defensive): +0.8
High-quality business
Risks
Analyst target reached - limited upside remaining
Weak growth

Key Metrics

P/E (TTM)16.6
P/E (Fwd)15.5
Mkt Cap$12.2B
EV/EBITDA12.1
Profit Mgn18.4%
ROE18.1%
Rev Growth-1.4%
Beta0.33
Dividend3.59%
Rating analysts23

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

P/C3.46bearish

Concentration Risks(10-K Item 1A)

  • MEDIUMGeographicUnited States44%
    10-K Item 1: 'The United States, our most important market, accounted for 44% of our net sales in fiscal 2025, and the other 56% were outside of the United States.'
  • LOWCustomertwo largest customers
    10-K Item 1: 'In fiscal 2025, our two largest customers accounted for approximately 13% and 11% of consolidated net sales, respectively.'

Material Events(8-K, last 90d)

  • 2026-03-16Item 5.02MEDIUM
    Brown-Forman elected James W. Peters as EVP and CFO effective March 31, 2026, succeeding Leanne D. Cunningham, who is retiring from the company effective May 1, 2026. Clean handoff with successor named.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Revenue shrinking — -1.4% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
2.1
Earnings Growth
3.1
Declining revenue: -1%

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
3.3
Growth Rank
3.3
Value Rank
5.0
GatesA.R:R -0.7=NEGATIVEMomentum 4.7<5.5 (soft — BUY_NOW allowed but watch)Executive change: officer departure/appointmentMomentum 4.7>=4.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 76d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
45 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $25.55Resistance $29.06

Price Targets

$25
$28
A.Upside-4.0%
A.R:R-0.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-4.0% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-12-03 (76d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is BF-B stock a buy right now?

Hold if already holding. Not a fresh buy at $26.50, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Weak growth. Chart setup: RSI 45 mid-range, Bollinger mid-band. Maintain position. Not compelling to add more. Target $28.48 (+7.5%), stop $24.90 (−6.4%), A.R:R -0.7:1. Score 5.2/10, moderate confidence.

What is the BF-B stock price target?

Take-profit target: $28.48 (-4.0% upside). Target $28.48 (+7.5%), stop $24.90 (−6.4%), A.R:R -0.7:1. Stop-loss: $24.90.

What are the risks of investing in BF-B?

Analyst target reached - limited upside remaining; Weak growth.

Is BF-B overvalued or undervalued?

Brown Forman Inc trades at a P/E of 16.6 (forward 15.5). TrendMatrix value score: 6.0/10. Verdict: Hold.

What do analysts say about BF-B?

23 analysts cover BF-B with a consensus score of 2.7/5. Average price target: $28.

What does Brown Forman Inc do?Brown-Forman makes and sells spirits and wine across brands including Jack Daniel's Tennessee Whiskey, Woodford...

Brown-Forman makes and sells spirits and wine across brands including Jack Daniel's Tennessee Whiskey, Woodford Reserve, Old Forester, Herradura and el Jimador tequilas, and Chambord, distributed in over 170 countries. The United States remains its largest market at 44% of fiscal 2025 net sales (down from 47% two years earlier), sold via distributors and state governments, with its two largest customers at 13% and 11% of net sales.

Related stocks: BF-A (Brown Forman Inc) · DEO (Diageo plc) · TAL (TAL Education Group) · COCO (The Vita Coco Company, Inc.) · SENEB (Seneca Foods Corp.)
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