UPDATE: Stifel Nicolaus Increases PT to $36 on Constellation Brands on Revenue Outlook
Stifel Nicolaus reiterated its Buy rating on Constellation Brands (NYSE: STZ) and raised its price target from $32 to $36.
Stifel Nicolaus said, "Yesterday, Beer Marketer's Insights, a trade publication, reported that Constellation's Crown business is taking a 3% price hike in Florida, effective September 30th. This is the first in the state in several years, and based on related conversations, we expect similar increases in other states. We believe inflation-type increases are logical now that Crown's depletions are more than a year into growing again (mid single-digits). We take our projected Crown revenue up 5%, anticipating 3% price/mix growth next year and 3% volume growth versus 1% previously. This adds $0.04 to our FY14E EPS (now $2.72, was $2.68, consensus $2.58)."
Constellation Brands closed at $30.68 on Tuesday.
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