The following is being issued by First Security Van Kasper, a member of the National Association of Securities Dealers, CRD number 7665:

Traci L. Mangini, consumer products analyst at FS Van Kasper, is initiating coverage on Brown-Forman Corp. (NYSE: BF'B; BF'A) ($51 5/8 / $51 1/4) with a Buy rating and 12-month price target of $68.

Below are direct quotations from Ms. Mangini's research report:

-- We are initiating coverage of Brown-Forman Corporation with a Buy rating and a 12-month price target of $68.
-- We believe that the company, after six years of consistent, solid earnings growth, has the ability to increase earnings at solid high single-digit rates over the next several years through expanding its portfolio of premium brands, broadening its global penetration, and increasing demand through focused sales and marketing initiatives.
-- With the company's healthy balance sheet, we believe that Brown-Forman is well positioned to make strategic investments in the business and capitalize on the positive trends occurring in the beverage alcohol industry.
-- We project EPS increases of 9.1% to $3.47 for FY01 and 10.1% to $3.82 for FY02.
-- The shares of Brown-Forman trade at a discount to the average of its beverage alcohol peers based on an enterprise value to EBITDA and price-to-earnings.
-- We believe that the shares conservatively warrant a multiple that is at least in-line with the average enterprise value to EBITDA multiple of its peers, which is 9.5 times. Applying this multiple to our FY02 EBITDA estimate of $505.7 million, we arrive at a 12-month price target of $68.

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