UPDATE: Stifel Nicolaus Raises PT to $42 on Constellation Brands on Lower Tax Rate, Strong Performance

Stifel Nicolaus reiterated its Buy rating on Constellation Brands STZ and increased its price target from $36 to $42. Stifel Nicolaus commented, "Following Constellation's 2Q, we take fiscal 2013E EPS to $2.05 (was $1.93), mainly reflecting a lower tax rate, and fiscal 2014E EPS to $2.70 (was $2.72) as strong shareprice performance means higher estimated share count. … We reiterate our Buy recommendation, continue to believe FCF is attractive at current shareprices, and take our target to $42 per share (15.6x fiscal 2014E EPS of $2.70) from $36 per share." Constellation Brands closed at $36.20 on Friday.