UPDATE: Stifel Reiterates Buy Rating, Lowers PT on Constellation Brands on Increased Glass Margin Benefits

In a report published Friday, Stifel analyst Mark Swartzberg reiterated a Buy rating on

, but lowered the price target from $113.00 to $98.00. In the report, Stifel noted, “Our initial take on Constellation's announced glass spending was that it increased capital outlays too much for the intended margin benefit. We now think management's mid-30s beer operating margin target for FY18 is conservative and estimate 38.0% for the period (was 35.5%). Our estimates reflect our increased beer margin estimates but go down for Owens Illinois's estimated minority interest in the new glass JV.” Constellation Brands closed on Thursday at $84.40.