UBS Reiterates a 'Buy' on Constellation Brands (STZ); Further Upside Despite Recent Move on 'Crowning' Achievements

UBS reiterates a 'Buy' on Constellation Brands (NYSE: STZ) price target of $35.00 (from $33.00).

Analyst, Kaumil S. Gajrawala, said, "After a +40% move on initial speculation and the eventual deal between ABI/Modelo/STZ, we believe a strong Crown business and accelerating wine trends present opportunity for further upside. Following meetings with management, we see near-term upside as deal certainty becomes better understood and investors focus on the operational potential at STZ. Following post-deal delevering, we see increased dividend likelihood with Crown’s stable cashflows."

Two other positive notes include: 1) DOJ Concerns Proactively Addressed – ABI is Unable to Influence Crown; and 2) Wine Business Invigorated.

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 $27.62 yesterday.

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