Analysts’ Opinions Are Mixed on These Consumer Goods Stocks: Adidas (OTHEROTC: ADDYY) and Constellation Brands Inc (NYSE: STZ)

By Jason Carr

Companies in the Consumer Goods sector have received a lot of coverage today as analysts weigh in on Adidas (OTHEROTC: ADDYY) and Constellation Brands Inc (NYSE: STZ).

Adidas (OTHEROTC: ADDYY)

Goldman Sachs analyst Jamie Bajwa maintained a Buy rating on Adidas (OTHEROTC: ADDYY) on November 4. The company’s shares closed yesterday at $75.33.

According to TipRanks.com, Bajwa is ranked #2870 out of 4181 analysts.

Adidas has an analyst consensus of Moderate Buy.

Constellation Brands Inc (NYSE: STZ)

Susquehanna analyst Pablo Zuanic reiterated a Hold rating on Constellation Brands Inc (NYSE: STZ) today and set a price target of $159. The company’s shares closed yesterday at $165.93.

Zuanic observed:

“STZ holds its Investor Day on Nov. 9 (1 p.m. in NYC). We only rate the stock Neutral, despite the seemingly attractive valuation (for its growth profile): there are only three stocks in our coverage growing sales north of 10%, and STZ only trades at a 15% premium to peers (see appendix for our apples-to-apples valuation methodology), while MNST trades at a 66% peer premium and BUFF at 45% (KO and KHC actually trade at premiums to STZ). To become more constructive, we would hope to learn more about: a) the cost-per-barrel opportunity, b) more visibility on FCF and “cash EPS,” c) sustainability of beer growth (we have 7% vs. 10% growth pa for FY18-19), d) more color on demographics of the Mexican beer unit, and e) better assess the profit margin opportunity in W&S (as we show here, the company’s wine margins are well above peers and we wonder about the upside).”

According to TipRanks.com, Zuanic is a 4-star analyst with an average return of 2.5% and a 53.0% success rate. Zuanic covers the Consumer Goods sector, focusing on stocks such as Anheuser-Busch Inbev Sa, Mondelez International, and Keurig Green Mountain.

Constellation Brands Inc has an analyst consensus of Moderate Buy, with a price target consensus of $187.60.