Constellation Brands (STZ) Pullback a Buying Opportunity - Morgan Stanley

Morgan Stanley analyst Dara Mohsenian continues to see a compelling buying opportunity in Constellation Brands (NYSE: STZ) following recent weakness and reiterated an Overweight rating and price target of $207.

Dara noted; 1) While STZ did not guide beer margins for FY20, it sounded like a flattish initial guide is a reasonable expectation given STZ cited a number of puts and takes near term that theoretically could offset each other; 2) STZ sounded confident in Canopy performance, stating twice that Canopy was performing at or even slightly above its initial expectations, and clarified that Canopy’s miss vs Street expectations last quarter was actually in line with STZ’s expectation; 3) Reading between the lines, it sounds like STZ’s potential sale of low-end wine is likely near-term, as management spent time detailing wine trends excluding the low end.

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 $159.88 yesterday.

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