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Brown-Forman's in Fine Spirits

Analysts that are too negative on Brown-Forman aren’t seeing the full picture, CEO Paul Varga told Cramer Wednesday.

Many of the major brokerages – Lehman Brothers, Goldman Sachs, J.P. Morgan – have rated Brown-Forman a “sell” for at least 10 points. Too bad for them those were 10 points of upside.

While Varga will admit the U.S. market has been “challenging” in the past year, he said analysts have “overread” that part of the company. Brown-Forman’s footprint extends overseas, with business growing especially in Eastern Europe.

The company has at least some exposure to all the biggest countries, Varga said, “but we’re at such small levels of market share that the upside is still very, very large.”

“The growth is overseas,” Cramer said, and that’s why this stock’s a buy.

“Pull the trigger now,” he said. “I think Brown-Forman is the best of breed. I think the stock goes higher.”



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