Constellation Brands, Inc (STZ) Removed from Americas Sell List
December 18, 2009 2:56 PM
Goldman Sachs Group, Inc. (NYSE: GS) upgrades Constellation Brands, Inc. (NYSE: STZ) to Neutral from Sell as they believe US wine challenges are now appropriately discounted.
Analyst Lindsay Drucker Mann of Goldman Sachs Group, Inc says she continues to expect that Constellation Brands, Inc. will face challenges in its US wine business over the next several months. The challenge will be due to tepid consumer demand, escalating discounting, particularly bottles priced north of $5 a bottle, and share declines for STZ within the segments it competes in.
The latest grocery store data and Foster’s recent profit warning support these concerns. Goldman Sachs maintain a $1.67 Feb FY2010 forecast, and their $1.77 FY2011 and $1.94 FY2012 estimates remain a nickel below the Street.
