Goldman Sachs Lowers Numbers on Constellation Brands (STZ) Ahead of Q2 Results

Goldman Sachs lowered estimate and their price target on Neutral-rated Constellation Brands (NYSE: STZ) from $23 to $21 ahead of Q2 results on 10/6/11.

The firm cut EPS estimates for FY12/FY13/ FY14 to $1.96/$2.20/$2.50 from $2.01/$2.41/$2.82.

Goldman said investors should expect another soft quarter.

"Fundamentally, we remain skeptical STZ can consistently grow its wine sales in line with industry growth without having to heavily invest behind its brands given its fragmented brand portfolio and lack of consumer loyalty in the wine business," the analyst said. Recent ielsen food-store data supports this concern, they said.

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 $18.39 yesterday.

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