UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Constellation Brands

In a report published Wednesday, J.P. Morgan & Co. reiterated its Neutral rating on Constellation Brands STZ, and raised its price target from $30.00 to $42.00. J.P. Morgan noted, “In the wine business it appears trends are improving, and the company has made the right moves, both structurally (aligning its distribution), and internally (shifting its focus to organic growth and margin accretion). We expect better quality earnings in FY13 with easier comps. In addition, the company should see a strong acceleration in earnings in FY14 with the addition of the remaining 50% of ebit from the Crown JV. After the deal, it becomes primarily a deleveraging story.” Constellation Brands closed on Tuesday at $35.78.