UPDATE: Stifel Nicolaus Downgrades Constellation Brands to Hold on DOJ Deal Challenge
Stifel Nicolaus downgraded Constellation Brands (NYSE: STZ) from Buy to Hold and removed the price target of $45.00.
Stifel Nicolaus commented, "What's changed. We think the DOJ's suit and precedent suits imply a number of negative outcomes to Constellation – no deal, delayed deal, deal that addresses DOJ concerns while carving out Constellation – that we had not anticipated. This reduces our prior expectation that ABI was likely to prevail on similar or better deal terms for Constellation. We think this makes the shares an even risk/reward since upside valuations are in the $40s (old target $45 per share), downside valuations are in the $20s, and the shares closed yesterday in between ($31.55 per share)."
Constellation Brands closed at $31.50 on Monday.
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