Auriga Starts Constellation Brands (STZ) at Buy; More Focused Portfolio May Break Shares Out of Box

Auriga initiates coverage on Constellation Brands (NYSE: STZ) with a Buy. PT $25.00.

Auriga analyst says, "Constellation Brands owns several top wine and spirit brands, and its Crown Imports investment has the distribution rights for imported beer brands that include Corona Extra. Shares are currently trading under 9.0x our 2012 EPS estimate, which is below several of its peers. Our $25 price target is based on a 12x forward multiple of 2012 EPS as well as discounted cash flow analysis that uses an 8.0x terminal value which is similar to its current multiple but a discount to several peers."

For more ratings news on Constellation Brands click here and for the rating history of Constellation Brands click here.

Shares of Constellation Brands closed at $17.62 yesterday.

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