Jack Daniel’s Maker Cut at Morgan Stanley on Alcohol Demand
- Spirits trends have been softer than expected, analyst says
- Brown-Forman has underperformed staples peers in past year
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Morgan Stanley downgraded the maker of Jack Daniel’s whiskey to a hold-equivalent rating on Monday, citing weaker-than-expected demand for spirits after strong growth during the Covid-19 pandemic.
Although Brown-Forman Corp. lowered its annual forecasts in December, analyst Eric Serotta views the company’s outlook as aggressive given muted industry growth and lackluster market-share trends. He sees a risk that US demand for spirits will remain subdued for the next several quarters following two years of outsized growth during the stay-at-home era.