Barclays Maintains an 'Equalweight' on Constellation Brands (STZ); 2QF12 Earnings Prep

Barclays maintains an 'Equalweight' on Constellation Brands (NYSE: STZ) price target of $21.00.

Barclays analyst says, "In this quarter, STZ is lapping a very difficult shipment comparison, resulting from distributor transitions (related to the consolidation initiative) and will likely have greater funding levels for promotional & marketing activities at the Crown unit. These factors, combined with the recent softening of consumer confidence levels, suggest our forecast this quarter could well prove to be overly optimistic. Accordingly, we are lowering our F2012 EPS forecast from $2.02 to $1.92 and our F2013 estimate from $2.21 to $2.10. Concurrently, our price target slips from $23 to $21, now based on a 10.9x P/E multiple of our new F12 estimate (our previous target was based on an 11.4x multiple on our prior F12 estimate). Our expected trading range is now $17-21, compared to our prior $19-$25 range."

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 $18.72 yesterday.

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