Auriga Reiterates a 'Buy' on Constellation Brands (STZ): Q4 Expectations

Auriga reiterates a 'Buy' on Constellation Brands (NYSE: STZ) price target of $25.00.

Auriga analyst said, "STZ is scheduled to report its fiscal quarter results on Thursday, April 5, and we are expecting improved profitability compared to last year. We also expect improved margins in the quarter, mostly due to last year's disposal of its low-margin Australian and UK operations which should also reduce revenue. We expect F4Q revenue and EPS of $609.1 million and $0.37, respectively, compared to last year's $715.3 million and $0.35, respectively. Our estimates are slightly lower than consensus estimates, as shown in Figure 1. For the year, we are expecting EPS of $2.03 which is within management's guidance of $2.00 to $2.10. With our expectations of improving margins, and its solid position in US wine with brands such as Robert Mondavi, imported beer through its Crown Imports joint venture with Grupo Modelo (which sells Corona), and the rapidly growing Svedka Vodka, we believe Constellation Brands is poised for further long-term growth."

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 $23.59 yesterday.

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