J.P. Morgan: Underlying Trends Look Solid for Brown-Forman

In a research report published today by J.P. Morgan, Brown-Forman Corp.'s

recent miss was mainly due to factors affecting reported sales. J.P. Morgan further commented in the report, “As we had highlighted yesterday, headwinds to sales included shipment timing, FX and brand divestitures. These amounted to -7% vs. our -4% forecast. The remainder of the P&L was relatively in line with SG&A/sales and ad/sales coming in a little higher than our model.” J.P. Morgan maintains its Neutral rating on Brown-Forman, which is currently trading at $80.00.