Weekly Research Analysts’ Ratings Updates for Constellation Brands (STZ)

A number of firms have modified their ratings and price targets on shares of Constellation Brands (NYSE: STZ) recently:

  • 1/14/2019 – Constellation Brands was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Constellation Brands lagged the industry in the past month as it slashed earnings outlook for fiscal 2019. The soft view stems from expectations of higher interest expense and softness in wine and spirits business. Notably, incremental interest expense related to investment in Canopy Growth is likely to reduce earnings per share by 25 cents in fiscal 2019. Further, lowered sales and operating income view for the wine and spirits segment is likely to weigh on earnings. Moreover, higher transportation, operating and marketing expenses hurt operating margin for beer segment in fiscal third quarter, which is likely to continue in fiscal 2019. However, the company is gaining from constant brand-building efforts, acquisitions and e-commerce initiatives. Solid earnings and sales surprise history also reflects its inherent strength. The company is also poised to gain from exposure in the cannabis space with its investment in Canopy Growth.”
  • 1/11/2019 – Constellation Brands had its price target lowered by analysts at Morgan Stanley from $246.00 to $207.00. They now have an “overweight” rating on the stock.
  • 1/11/2019 – Constellation Brands had its price target lowered by analysts at Argus from $260.00 to $210.00. They now have a “buy” rating on the stock.
  • 1/10/2019 – Constellation Brands had its “top pick” rating reaffirmed by analysts at Cowen Inc.
  • 1/10/2019 – Constellation Brands was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating.
  • 1/10/2019 – Constellation Brands had its price target lowered by analysts at BMO Capital Markets to $225.00. They now have an “outperform” rating on the stock.
  • 1/10/2019 – Constellation Brands had its “outperform” rating reaffirmed by analysts at Wells Fargo & Co. They now have a $235.00 price target on the stock, down previously from $260.00.
  • 1/10/2019 – Constellation Brands had its price target lowered by analysts at Citigroup Inc to $168.00. They now have a “neutral” rating on the stock.
  • 1/10/2019 – Constellation Brands is no longer covered by analysts at Macquarie.
  • 1/10/2019 – Constellation Brands had its “hold” rating reaffirmed by analysts at SunTrust Banks, Inc..
  • 1/10/2019 – Constellation Brands was upgraded by analysts at Goldman Sachs Group Inc from a “neutral” rating to a “buy” rating. They now have a $211.00 price target on the stock.
  • 1/9/2019 – Constellation Brands was upgraded by analysts at Guggenheim from a “sell” rating to a “neutral” rating.
  • 1/9/2019 – Constellation Brands had its “buy” rating reaffirmed by analysts at Pivotal Research. They now have a $265.00 price target on the stock, down previously from $300.00. They wrote, “We are convinced that CGC is the best way to play the rapidly growing cannabis market and investors should begin to fully reflect that value and CGC’s prospects, rather than penalizing STZ for the cash carrying costs of the investment, in our view. This makes STZ a truly compelling BUY. VALUATION: Constellation trades at 15.8x our estimate of EV/EBITDA, no doubt as “cheap” as STZ has been in the past five years. If one takes the POV that CGC could double to a $20 billion market cap in 18-24 months (our personal view) then Constellation will have a $10 billion investment as an add-back to EV and thus on the basis of core EBITDA of around $3,000, could trade at 20x that or over $300 based on FY20 EBITDA and the equity value of CGC. We’ve haircut that today but still view it as a more likely than not scenario.””
  • 1/7/2019 – Constellation Brands was upgraded by analysts at Susquehanna Bancshares Inc from a “negative” rating to a “neutral” rating. They now have a $174.00 price target on the stock. They wrote, “search”. Esto lo debería apagar. window.suggestmeyes_loaded = true; // Variable global que indica en qué página está var page = ‘landingPageNews’; var loggedin = 0; var snf = 0; var fts = ‘https://thefly.com//free_trial.php’; var sfd = ‘https://thefly.com/’; var logJs = false; var sessionNotify = {}; sessionNotify.title = “; sessionNotify.message = “; sessionNotify.redirect = “; // Begin editable configuration window.ABD = { bannerSuppress: false, // Optionally suppress the banner asking the user to disable their adblocker. bannerTheme: ‘blue’, // The bannerTheme of the banner (e.g. ‘blue’, ‘black’, ‘gray’) bannerSnoozeTime: 86400, // Set in seconds remoteURL: “https://abd.investingchannel.com”, // Remote ABD URL for JS bundle fetch and event reporting. proxyURL: “/proxy.php” // Proxy URL to use for event and bundle fetching if the remote URL is unreachable. }; // End editable configuration function getBundle(e,n,r){var o=new XMLHttpRequest;o.addEventListener(“load”,n),o.addEventListener(“error”,r),o.open(“GET”,e),o.send()}function handleSuccess(){if(200!=this.status)throw new Error(“ABD was able to reach the server but received a non 200:OK response.”);var e=document.createElement(“script”);e.innerHTML=this.responseText,document.body.appendChild(e)}function handleErrorInitial(){getBundle(window.ABD.proxyURL+”?remoteURL=”+encodeURIComponent(window.ABD.remoteURL+”/js/bundle.js”),handleSuccess,handleErrorProxy)}function handleErrorProxy(){throw new Error(“ABD was unable to fetch the JS component from the remote site or local proxy.”)}getBundle(window.ABD.remoteURL+”/js/bundle.js”,handleSuccess,handleErrorInitial); (function(i,s,o,g,r,a,m){i[‘GoogleAnalyticsObject’]=r;i[r]=i[r]||function(){ (i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o), m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m) })(window,document,’script’,’//www.google-analytics.com/analytics.js’,’ga’); $(“document”).ready(function(){ ga(‘create’, ‘UA-57334935-1’, ‘thefly.com’); ga(‘set’, ‘dimension1’, ‘notlogged’); ga(‘send’, ‘pageview’); }); /* Wrappers para analytics */ function aTrackEvent(eventCategory, eventAction, eventLabel, eventValue, fieldsObject){ ga(‘send’, ‘event’, eventCategory, eventAction, eventLabel, eventValue, fieldsObject); log(“aTrackEvent(‘”+eventCategory+”‘,'”+eventAction+”‘,'”+eventLabel+”‘,'”+eventValue+”‘)”); //console.log(“aTrackEvent(‘”+eventCategory+”‘,'”+eventAction+”‘,'”+eventLabel+”‘,'”+eventValue+”‘)”); return true; } {“@context”:”http:\/\/schema.org”,”@type”:”Organization”,”url”:”https:\/\/thefly.com”,”logo”:”https:\/\/thefly.com\/images\/logo_thefly_small.png”,”contactPoint”:[{“@type”:”ContactPoint”,”telephone”:”+1 908 273 6397″,”contactType”:”customer support”,”areaServed”:”US”,”availableLanguage”:”English”}],”sameAs”:[]} {“@context”:”http:\/\/schema.org”,”@type”:”WebSite”,”name”:”TheFly.com”,”alternateName”:”First site in stock news.”,”url”:”https:\/\/thefly.com”} InvestingChannelQueue = window.InvestingChannelQueue || []; InvestingChannelQueue.push(function() { InvestingChannel.UAT.Run(“0e5c08ae-fecf-41c6-8671-93ae635c67af”
  • 1/7/2019 – Constellation Brands was upgraded by analysts at HSBC Holdings plc from a “hold” rating to a “buy” rating. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 12/23/2018 – Constellation Brands was given a new $192.00 price target on by analysts at Macquarie. They now have a “hold” rating on the stock.
  • 12/20/2018 – Constellation Brands was given a new $246.00 price target on by analysts at Morgan Stanley. They now have a “buy” rating on the stock.
  • 12/18/2018 – Constellation Brands was downgraded by analysts at OTR Global to a “positive” rating.
  • 12/17/2018 – Constellation Brands was given a new $192.00 price target on by analysts at Macquarie. They now have a “hold” rating on the stock.
  • 12/13/2018 – Constellation Brands is now covered by analysts at UBS Group AG. They set a “neutral” rating and a $209.00 price target on the stock.
  • 12/7/2018 – Constellation Brands was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Constellation Brands surpassed the industry year to date, courtesy of its solid earnings trend, which continued in second-quarter fiscal 2019. Earnings reverted to its 14 quarter long record of positive surprises, after a miss in the previous quarter. Additionally, sales outpaced estimates in 10 out of the last 12 quarters. Higher sales at the beer, and wine and spirits segments as well as strong depletions and shipment volumes in the beer business aided results. Its constant brand-building efforts, acquisitions, investments in digital enablement for e-commerce initiatives and the new ERP platform are added positives. Moreover, management’s raised earnings outlook for fiscal 2019 drives optimism. However, higher marketing expenses and transportation costs have been denting operating margin, which remains a threat to profitability. Stiff competition, higher debt position and taxes are other concerns.”
  • 12/7/2018 – Constellation Brands had its “buy” rating reaffirmed by analysts at Jefferies Financial Group Inc. They now have a $289.00 price target on the stock. They wrote, “STZ remains our top large cap growth idea following our meeting/site visit w/ cannabis industry leader, Canopy Growth (< 40% owned by STZ)."”
  • 12/5/2018 – Constellation Brands was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $222.00 price target on the stock. According to Zacks, “Constellation Brands surpassed the industry in the last three months, courtesy of its solid earnings trend, which continued in second-quarter fiscal 2019. Earnings reverted to its 14 quarter long record of positive surprises, after a miss in the previous quarter. Additionally, sales outpaced estimates in 10 out of the last 12 quarters. Higher sales at the beer, and wine and spirits segments as well as strong depletions and shipment volumes in the beer business aided results. Its constant brand-building efforts, acquisitions, investments in digital enablement for e-commerce initiatives and the new ERP platform are added positives. Moreover, management’s raised earnings outlook for fiscal 2019 drives optimism. However, higher marketing expenses and transportation costs have been denting operating margin, which remains a threat to profitability. Stiff competition, higher debt position and taxes are other concerns.”
  • 11/29/2018 – Constellation Brands was downgraded by analysts at Macquarie from an “outperform” rating to a “neutral” rating. They now have a $210.00 price target on the stock.

STZ traded up $0.40 on Monday, hitting $159.61. The company had a trading volume of 25,440 shares, compared to its average volume of 5,391,411. The firm has a market cap of $28.60 billion, a P/E ratio of 18.30, a price-to-earnings-growth ratio of 1.57 and a beta of 0.38. Constellation Brands, Inc. has a 1 year low of $150.37 and a 1 year high of $236.62. The company has a current ratio of 1.66, a quick ratio of 0.76 and a debt-to-equity ratio of 0.80.

Constellation Brands (NYSE:STZ) last issued its quarterly earnings data on Wednesday, January 9th. The company reported $2.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.04 by $0.33. The firm had revenue of $1.97 billion for the quarter, compared to analyst estimates of $1.91 billion. Constellation Brands had a net margin of 35.27% and a return on equity of 18.27%. Constellation Brands’s revenue was up 9.5% on a year-over-year basis. During the same period in the previous year, the firm earned $2.00 EPS. Equities research analysts forecast that Constellation Brands, Inc. will post 9.25 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 26th. Investors of record on Tuesday, February 12th will be issued a $0.74 dividend. The ex-dividend date of this dividend is Monday, February 11th. This represents a $2.96 annualized dividend and a yield of 1.85%. Constellation Brands’s dividend payout ratio (DPR) is currently 10.67%.

In other Constellation Brands news, Chairman Richard Sands sold 137,924 shares of the business’s stock in a transaction dated Friday, October 19th. The shares were sold at an average price of $223.66, for a total transaction of $30,848,081.84. Following the sale, the chairman now directly owns 346,525 shares in the company, valued at $77,503,781.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Thomas Michael Kane sold 4,419 shares of the business’s stock in a transaction dated Friday, October 19th. The stock was sold at an average price of $223.83, for a total transaction of $989,104.77. Following the sale, the vice president now owns 8,499 shares in the company, valued at $1,902,331.17. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 578,723 shares of company stock worth $129,438,449. 15.80% of the stock is owned by insiders.

A number of large investors have recently modified their holdings of STZ. Central Bank & Trust Co. increased its stake in shares of Constellation Brands by 0.4% during the third quarter. Central Bank & Trust Co. now owns 21,961 shares of the company’s stock worth $4,735,000 after buying an additional 89 shares during the period. BW Gestao de Investimentos Ltda. increased its stake in shares of Constellation Brands by 1.2% during the third quarter. BW Gestao de Investimentos Ltda. now owns 8,500 shares of the company’s stock worth $1,833,000 after buying an additional 100 shares during the period. Carroll Financial Associates Inc. increased its stake in shares of Constellation Brands by 132.0% during the fourth quarter. Carroll Financial Associates Inc. now owns 283 shares of the company’s stock worth $48,000 after buying an additional 161 shares during the period. Tower View Investment Management & Research LLC increased its stake in shares of Constellation Brands by 2.5% during the fourth quarter. Tower View Investment Management & Research LLC now owns 8,589 shares of the company’s stock worth $1,381,000 after buying an additional 208 shares during the period. Finally, Benjamin F. Edwards & Company Inc. increased its stake in shares of Constellation Brands by 49.3% during the third quarter. Benjamin F. Edwards & Company Inc. now owns 787 shares of the company’s stock worth $170,000 after buying an additional 260 shares during the period. Institutional investors own 72.56% of the company’s stock.

Constellation Brands, Inc, together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands.

Featured Story: Marijuana Stocks Future Looks Bright

Receive News & Ratings for Constellation Brands Inc Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Constellation Brands Inc and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply