Constellation Brands' (STZ) "Outperform" Rating Reaffirmed at Royal Bank Of Canada

Key Points

• Royal Bank of Canada reaffirmed its “Outperform” rating on Constellation Brands and maintained a $185 price target, implying 63.79% upside from the prior close.
• Analyst sentiment is mixed: 11 analysts rate the stock Buy, nine Hold, and two Sell, resulting in a consensus “Hold” rating and an average target price of $158.90. Several firms recently reduced their price targets.
• Constellation Brands shares traded near $112.95, close to their 52-week low, after the company missed quarterly EPS estimates despite revenue exceeding expectations; institutional investors own 77.34% of the stock.

Constellation Brands (NYSE:STZ - Get Free Report)'s stock had its "outperform" rating reiterated by research analysts at Royal Bank Of Canada in a note issued to investors on Friday, Benzinga reports. They currently have a $185.00 price objective on the stock. Royal Bank Of Canada's price objective would suggest a potential upside of 63.79% from the company's previous close.

Other analysts also recently issued research reports about the stock. Sanford C. Bernstein dropped their price target on shares of Constellation Brands from $197.00 to $180.00 and set an "outperform" rating on the stock in a report on Monday. Wells Fargo & Company dropped their price target on shares of Constellation Brands from $185.00 to $170.00 and set an "overweight" rating on the stock in a report on Monday, June 29th. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Constellation Brands from $150.00 to $136.00 and set a "hold" rating on the stock in a research note on Friday, September 11th. JPMorgan Chase & Co. lowered their price objective on shares of Constellation Brands from $165.00 to $133.00 and set a "neutral" rating on the stock in a research note on Friday, September 25th. Finally, Citigroup lowered their price objective on shares of Constellation Brands from $185.00 to $165.00 and set a "buy" rating on the stock in a research note on Tuesday, September 22nd. Eleven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $158.90.

Constellation Brands Stock Performance

Shares of NYSE STZ traded down $0.04 during trading on Friday, reaching $112.95. 121,471 shares of the company traded hands, compared to its average volume of 2,211,092. The firm has a 50 day simple moving average of $127.30 and a 200-day simple moving average of $139.44. The company has a quick ratio of 0.48, a current ratio of 0.91 and a debt-to-equity ratio of 1.06. The stock has a market capitalization of $19.29 billion, a PE ratio of 10.78, a P/E/G ratio of 2.24 and a beta of 0.44. Constellation Brands has a 52-week low of $111.54 and a 52-week high of $168.60.

Constellation Brands (NYSE:STZ - Get Free Report) last announced its quarterly earnings results on Tuesday, June 30th. The company reported $3.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $3.70 by ($0.27). The company had revenue of $2.43 billion for the quarter, compared to analysts' expectations of $2.39 billion. Constellation Brands had a net margin of 18.87% and a return on equity of 25.58%. The business's revenue was down 3.3% compared to the same quarter last year. During the same period in the previous year, the business earned $3.22 EPS. Equities research analysts anticipate that Constellation Brands will post 11.81 earnings per share for the current year.

Institutional Investors Weigh In On Constellation Brands

A number of institutional investors and hedge funds have recently added to or reduced their stakes in STZ. Junto Capital Management LP bought a new stake in Constellation Brands during the 2nd quarter worth approximately $21,683,000. Engineers Gate Manager LP bought a new stake in Constellation Brands during the 2nd quarter worth approximately $1,645,000. Cidel Asset Management Inc. raised its stake in Constellation Brands by 12.2% during the 2nd quarter. Cidel Asset Management Inc. now owns 1,921 shares of the company's stock worth $267,000 after acquiring an additional 209 shares during the period. Integrated Wealth Concepts LLC raised its stake in Constellation Brands by 11.4% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 10,631 shares of the company's stock worth $1,479,000 after acquiring an additional 1,090 shares during the period. Finally, NewEdge Advisors LLC raised its stake in Constellation Brands by 8.4% during the 2nd quarter. NewEdge Advisors LLC now owns 33,106 shares of the company's stock worth $4,605,000 after acquiring an additional 2,552 shares during the period. Institutional investors own 77.34% of the company's stock.

Constellation Brands Company Profile

Constellation Brands, Inc is a beverage alcohol company that develops, markets and distributes beer, wine and spirits. Its portfolio includes well-known beer brands such as Modelo Especial, Corona Extra, Corona Light and Pacifico, along with wine brands including Robert Mondavi, Kim Crawford, Meiomi, The Prisoner Wine Company and Ruffino.

The company also offers spirits through brands such as Casa Noble tequila and High West whiskey. Constellation's products are sold through retailers, distributors, restaurants and other on-premise locations, with a primary focus on the United States.