Market Overview

UPDATE: Stifel Nicolaus Downgrades Constellation Brands to Hold on DOJ Deal Challenge

Share:
Related STZ
Constellation Brands CEO Weighs In On Meiomi Acquisition, Booming Beer
Mid-Day Market Update: Chubb Surges Following Announcement of Acquisition by Ace; Ballard Power Shares Decline
Diageo Sells Off Luxury Hotel Gleneagles: More in the Cards? - Analyst Blog (Zacks)

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.

Latest Ratings for STZ

DateFirmActionFromTo
Jul 2015Stifel NicolausMaintainsBuy
Jul 2015Stifel NicolausMaintainsBuy
Jun 2015SusquehannaMaintainsNeutral

View More Analyst Ratings for STZ
View the Latest Analyst Ratings

Posted-In: Stifel NicolausAnalyst Color Downgrades Analyst Ratings

 

Related Articles (STZ)

Around the Web, We're Loving...

Get Benzinga's Newsletters