Constellation Brands' (STZ) performance hangs in the balance as many key variables, including tariffs and beverage demand, remain uncertain, and this could surprise in the coming days, UBS said Tuesday.

The company is scheduled to report its fiscal Q4 earnings on Wednesday after market close. UBS adjusted EPS estimate for Q4 to $2.29, down from $2.30, but the brokerage is not sure financial results will as much as the future plans to navigate headwinds like tariffs.

"Despite a difficult near-term setup, the current narrative on the stock is as bearish as we can remember, suggesting that much of this downside is expected/priced in," the analysts said.

UBS said it continue to expect Constellation to offer stronger topline and bottom-line growth over the long-term, despite current macro situation.

The analysts lowered the price target on the stock to $205 from $223, with a buy rating.

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