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UPDATE: Stifel Reiterates On Constellation Brands On Raised Estimates

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In a report published Thursday, Stifel analyst Mark Swartzberg reiterated a Buy rating on Constellation Brands (NYSE: STZ), and raised the price target from $90.00 to $113.00.

In the report, Stifel noted, “Constellation says that it is in the process of soliciting bids on raw materials from sources other than ABI (Constellation currently purchases all of its raw materials from ABI) and that investors can expect an update on this process, including plans for self-sourcing of finished goods before calendar year-end (“over the next few months”, per CEO Rob Sands; e.g., next quarterly call). With this news, we anticipate an upward revision to management's long-term margin target of ‘low- to mid-30s' after buildout of Nava is complete, targeted for completion by Summer 2016. Our estimates currently reflect a forecast of 35.3% margin in FY17.”

Constellation Brands closed on Wednesday at $90.45.

Latest Ratings for STZ

DateFirmActionFromTo
Sep 2014Cowen & CompanyInitiates Coverage onMarket Perform
Aug 2014Credit SuisseInitiates Coverage onNeutral
Jul 2014JP MorganMaintainsNeutral

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Posted-In: Mark Swartzberg StifelAnalyst Color Price Target Analyst Ratings

 

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