Constellation Brands Inc (STZ) Receives a Buy from Jefferies

By Ryan Adsit

In a report released yesterday, Kevin Grundy from Jefferies reiterated a Buy rating on Constellation Brands Inc (STZResearch Report). The company’s shares opened today at $167.35.

Grundy observed:

“STZ’s CAGNY pres. was upbeat on the runway for growth in beer (> 70% of EBIT); however, mgmt. wanted to level set expectations in key areas (beer OM %, near-term EPS dilution from wine divest./WEED). STZ’s med-term target for ~10% EPS CAGR was reiterated despite likely declines in FY20. We trim our PT to $255/concede shares likely to tread water near-term, though see beer biz as one of best in CPG and valuation as attractive at ~13.5x EV/EBITDA (ex-Canopy).”

According to TipRanks.com, Grundy is a 4-star analyst with an average return of 5.7% and a 59.5% success rate. Grundy covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners plc, Interlink Electronics, Inc., and Edgewell Personal Care.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Constellation Brands Inc with a $204.21 average price target, implying a 22.0% upside from current levels. In a report issued on February 13, Morgan Stanley also maintained a Buy rating on the stock with a $233 price target.

See today’s analyst top recommended stocks >>

Constellation Brands Inc’s market cap is currently $31.32B and has a P/E ratio of 11.67. The company has a Price to Book ratio of 2.78.

Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Barry Fromberg, a Director at STZ sold 810 shares for a total of $140,171.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Constellation Brands, Inc. engages in the production, marketing, and distribution of beer, wine, and spirits. It operates through the following segments: Beer, Wine and Spirits, and Corporate Operations and Other. The Beer segment includes imported and craft beer brands.