UBS Raises Price Target on Constellation Brands (STZ) Following 4Q Earnings Report

UBS reiterated a Neutral rating on Constellation Brands (NYSE: STZ), and raised the price target to $173.00 (from $162.00), following the company's 4Q earnings report. STZ reported 4Q EPS of $1.19, coming in ahead of consensus estimates of $1.15. UBS believes that the company can maintain its top-line and P&L momentum in the nearterm, fueled largely by distribution gains, packaging/product innovations, and brand investments.

Analyst Stephen Powers commented, "STZ moderately beat UBS estimates in FYQ4:16, delivering $1.19 in EPS vs. UBSe of $1.18 and consensus of $1.15. Organic growth of +10.4% was broadly in-line with our expectation of +10.8%, though STZ moderately outperformed UBSe on gross margin (46.4% vs. UBSe of 46.3%) and on top-line M&A benefits (+4.6% vs. UBSe of +3.8%), offset in part by greater SG&A spend than we had anticipated (18.2% vs. UBSe of 17.6%). Guidance of $6.05-$6.35 in FY17 EPS was also mostly confirming (we had estimated $6.23 into the quarter), though it exceeded market fears of a more conservative outlook (hence the stock's solid climb Wednesday)."

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 $160.34 yesterday.

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