UPDATE: Citigroup Initiates Vina Concha y Toro at Buy with $47 PT on Lower Wine Costs

Citigroup initiated its coverage on Vina Concha y Toro

with a Buy rating and a price target of $47. Citigroup noted, "Our Buy rating is mainly based on our expectation for lower wine costs starting in 3Q12, and these accounts for 45% of total production costs. In addition, we highlight the ongoing consolidation of U.S. subsidiary Fetzer (acquired in 2Q11), and our expectation for higher average selling prices from a rebalancing of the sales mix towards premium wines." Vina Concha y Toro closed at $38.27 on Thursday.