(Updates with the latest stock move and additional details in the first paragraph and headline.)

Brown-Forman (BF.A, BF.B) shares were down roughly 10% in Wednesday trading after JPMorgan downgraded the stock to underweight from neutral and reduced the price target to $23 from $27 following the end of merger discussions with Pernod Ricard.

The companies ended discussions over a potential business combination after failing to reach mutually agreeable terms, Brown-Forman said.

"We intend to create long-term value for all stakeholders by focusing on our strategic and operational priorities," Brown-Forman said Tuesday in a statement. "This includes unlocking future growth by expanding our geographic footprint, continuing to build brands that resonate with consumers, and enhancing operational efficiency."

In late March, the companies confirmed they were in talks, noting "there could be no assurance that any such agreement would be reached."