UPDATE: Stifel Nicolaus Upgrades Constellation Brands to Buy on Earnings Power, Attractive Multiples

In a report published Thursday, Stifel Nicolaus analyst Mark Swartzberg upgraded the rating on Constellation Brands

from Hold to Buy, and named a $64.00 price target. In the report, Swartzberg noted, “Multiples are reasonable or even attractive versus peers and STZ's earnings power, in our estimation, implying a level of protection from management's stumbling as it takes on and expands brewing in Mexico. Higher end beer continues to drive U.S. beer consumption and saw accelerating share gains in 1Q as overall U.S. beer consumption weakened to down 3%. Constellation's Crown business led this trend (up 3-4%), outpacing Heineken (also down) and benefiting, in our opinion, from high levels of brand spend (approximately 8% of sales) and a portfolio of brands that is less and less ‘Corona and those other brands'. Modelo Especial and, to a lesser extent, Negra Modelo and Pacifico are contributing more and more to Crown's growth,” Constellation Brands closed on Wednesday at $50.24.