Warren Buffett’s $2.2 billion investment in Constellation Brands (NYSE: STZ) has seen a modest recovery, with shares rebounding about 8% after hitting a low below $132 in late September due to the COVID market crash.

Constellation’s Q2 2026 earnings report showed mixed results, with revenues declining by 15% but gross margin increasing by 100 basis points, leading to a big beat on adjusted earnings per share at $3.63.

Updated price targets suggest a longer road to recovery for Constellation, with the MarketBeat consensus at nearly $189, while Wall Street analysts’ average target is around $163, indicating a more conservative 14% potential rise.

The expectation of Hispanic Americans becoming a larger part of the U.S. population is a key tailwind for Constellation, driving beer sales, while concerns about GLP-1 usage reducing alcohol consumption lack scientific evidence.

Despite facing challenges, Constellation’s long-term potential remains strong, with shares trading above their five-year low but offering substantial upside potential due to robust beer brands and favorable demographic trends.

Read more at Nasdaq: Constellation Brands: Buffett’s $2.2B Bet May Have Hit Bottom