Brown-Forman (BFb.N): Takeaways from Sell-Side Meeting with BFB New CFO

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Brown-Forman (BFb.N): Takeaways from Sell-Side Meeting with BFB New CFO

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23 Jun 2026 19:42:16 ET │ 16 pages

Brown-Forman (BFb.N)

Takeaways from Sell-Side Meeting with BFB New CFO

CITI'S TAKE

This afternoon, we attended a group analyst meeting in New York with BFB’s

new CFO Jim Peters, who assumed the role in March (our note here). The

meeting covered Peters’ initial read on BFB’s challenges and opportunities,

the structural vs. cyclical debate in alcohol, developed & emerging market Neutral

initiatives, gross margin dynamics, capital allocation priorities, and BFB’s Price (23 Jun 26 16:00) US$27.24commercial growth agenda. Peters sounded constructive on long-term

opportunities, while also acknowledging the near-term challenges facing Target price US$26.00

the company. While BFB’s key operational initiatives remain on track, Expected share price return -4.6%

visibility remains limited, with BFB facing several topline and margin Expected dividend yield 3.5%headwinds in FY’27, and we remain cautious on the topline trajectory of the

business and pricing risk in the spirits industry given high inventory levels Expected total return -1.1%

Market Cap US$12,501M

Challenges & Opportunities — BFB’s CFO was candid that developed markets,

particularly the US, face persistent NT topline pressure, and acknowledged that

some consumer shifts toward RTDs and flavors may be more structural, in addition

to cyclical impacts from macros & affordability pressures. In this context, the Price Performance

company’s goal in developed markets is to focus on mkt share. In emerging markets, (RIC: BFb.N, BB: BF/B US)

BFB sees opportunities to drive category growth and penetration of its brands, with

investments required in infrastructure/people and brand/category development.