Analysts at Berenberg Bank upgraded Brown-Forman Corporation (NYSE:BF-B) to buy from hold, raising their price target to $76.10 from $69.20, noting that now is an attractive point for entry.

The analysts believe there is an upside risk to earnings forecasts, taking into account the consensually strong updates from all peers.

Moreover, the withdrawal of EU tariffs (The EU ended its punitive tariffs on American whiskey on 1 January 2022 ) is expected to have an immediate positive impact on the company’s gross margins this year. The company estimates that these tariffs have had a combined impact of $70 million on gross profit. The analysts expect the termination of tariffs, combined with stabilization of agave and wood inflation, and replenishment of distributor stocks will kickstart a strong gross margin recovery in calendar 2022.