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Citi Ups Estimates, PT On Constellation Brands After Q2 Results Get A Boost From Beer

Citi Ups Estimates, PT On Constellation Brands After Q2 Results Get A Boost From Beer

Citi raised its estimates and price target on Constellation Brands, Inc. (NYSE: STZ) after better-than-expected second-quarter earnings on strong demand for beer and wine/spirits.

Constellation Brands reported second-quarter adjusted EPS of $1.77, which beat consensus estimates by 11 cents, driven primarily by 20 percent sales growth in beer and 12 percent rise in wine/spirits.

Constellation also raised the low-end of its FY17 beer sales guidance (which now calls for +16–17 percent growth) and raised its beer operating income guidance to "high-teens" — both of which include Ballast Point.

Related Link: Anheuser-Busch Inbev Offers 'Best Of Both Worlds'; Morgan Stanley Resumes Coverage At Overweight

Analyst Wendy Nicholson raised FY17 EPS estimate to $6.40 (+18 percent year-over-year; toward the higher end of guidance $6.30–$6.45) from $6.28 and hiked FY18 EPS estimate to $7.33 (+15 percent year-over-year) from $7.12 given the improved sales outlook for the company's beer segment.

The analyst, who has a Neutral rating on the stock, also increased target price to $191 from $180. The stock closed Thursday's trading at $171.03 and was down 0.99 percent at $169.34 at last check Friday.

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Latest Ratings for STZ

Apr 2020CitigroupMaintainsNeutral
Apr 2020UBSUpgradesNeutralBuy
Apr 2020Credit SuisseMaintainsOutperform

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