Constellation Brands (STZ) Is Low-Beta Play on Canadian/Global Cannabis - Evercore

Evercore ISI analyst Robert Ottenstein maintains Outperform on Constellation Brands (NYSE: STZ) price target of $255.00.

The analyst comments "While STZ and Canopy have reiterated that it will not sell products in the U.S. or any market unless it is legal to do so at all government levels, it is clear that they are closely monitoring developments in the U.S. Lagunitas, owned by Heineken, recently launched Hi-Fi Hops Sparkling Water infused with THC in California dispensaries. The legal environment in the U.S. is evolving quickly, and it’s possible that STZ and Canopy could legally sell products in the U.S. sooner than some investors expect. This could be a material positive catalyst for the stock, although it would likely usher in significant new competition. STZ estimates that the current illicit market in the U.S. is ~$50 billion, with potential addressable market (retail sales) of $100 billion within 15 years."

The analyst also sees the equity as a low-beta way to play Cannabis in Canada and around the world for investors not seeking to invest in pure plays.

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 $218.57 yesterday.

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