UPDATE: Bank of America Upgrades Constellation Brands on More Upside Risk

In a report published Friday, Bank of America analyst Bryan D. Spillane upgraded the rating on

from Neutral to Buy, and raised the price target from $55.00 to $70.00. In the report, Bank of America noted, “We are upgrading STZ from Neutral to Buy and establishing a $70 PO (vs. $55 previously). In our view the current stock price doesn't fully reflect the full earnings and cash flow potential of this business once the company has completed its brewery expansion and reduced its current debt load. Marketplace fundamentals are solid for imported beer, wine and spirits, which should support solid performance for STZ as it fully integrates Crown. We expect the market to gain more confidence in management's ability to execute its plans and strategy as results are reported over the next 12 months. As we rebalance ratings across our coverage universe we see STZ as having more risk to the upside than downside.” Constellation Brands closed on Thursday at $56.52.