After Pivotal Research and Merrill Lynch gave Constellation Brands Inc (NYSE: STZ) a Buy rating last month, the company received another Buy, this time from Jefferies. Analyst Kevin Grundy initiated coverage with a Buy rating on Constellation Brands Inc today and set a price target of $283. The company’s shares closed yesterday at $208.62.
Grundy commented:
“Initiate coverage with a Buy and $283 PT. YTD under-performance (-8% vs. +8% Canopy investment / OM % concerns creates attractive entry point for a compelling growth story. Strong results should continue given STZ’s leadership position in high-growth Mexican imports, further runway for OM % expansion, unique leverage to cannabis market, and attractive valuation at 17x NTM EV/EBITDA. Compelling opportunity – prefer STZ to MNST in large cap growth.”
According to TipRanks.com, Grundy is a 4-star analyst with an average return of 8.9% and a 67.6% success rate. Grundy covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners, Edgewell Personal Care, and Monster Beverage Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Constellation Brands Inc with a $248.88 average price target, a 19.3% upside from current levels. In a report issued on August 30, Morgan Stanley also reiterated a Buy rating on the stock with a $258 price target.
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Constellation Brands Inc’s market cap is currently $39.39B and has a P/E ratio of 17.29. The company has a Price to Book ratio of 3.73.
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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.
