Goldman Sachs Downgrades Constellation Brands (STZ) to Neutral on Deal Risk, Sees 50% of Closing

February 1, 2013 7:47 AM EST
Get Alerts STZ Hot Sheet
Price: $149.59 -0.59%

Rating Summary:
    15 Buy, 9 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
Trade STZ Now!
Join SI Premium – FREE
Goldman Sachs downgraded Constellation Brands (NYSE: STZ) from Buy to Neutral with a price target of $40.00 (from $36.00) citing increased deal risk after the DOJ filed a lawsuit to block InBev's purchase of Grupo Modelo. Constellation Brands plan to acquire Crown Imports was dependent on the deal closing.

"We believe it is prudent to now place a lower probability of the deal closing given increased uncertainty," the analyst said. They have lowered the probability of the deal closing to 50% from 75%.

Goldman said the deal could still get down with "good enough" remedies. "The DOJ
is not indicating no remedy is acceptable so there is still potential for DOJ and ABI to agree to settle the lawsuit with ABI agreeing to make some concessions," the analyst comments.

For an analyst ratings summary and ratings history on Constellation Brands click here. For more ratings news on Constellation Brands click here.

Shares of Constellation Brands closed at $32.36 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst PT Change, Downgrades, Rumors

Related Entities

Goldman Sachs

Add Your Comment