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Constellation Brands (NYSE:STZ) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research report issued to clients and investors on Monday, American Banking News reports. They currently have a $80.00 price target on the stock. Zacks‘ target price indicates a potential upside of 5.54% from the stock’s previous close.

Zacks‘ analyst wrote, “Though Constellation Brands posted strong overall third-quarter fiscal 2014 results, we are skeptical about the company’s future performance due the distressed results at its wine and spirit segment. Moreover, we remain apprehensive of the wine and spirit segment’s future given the disappointing operating income projection for the segment. Thus, we have downgraded our long-term recommendation on the stock to Neutral. Nonetheless, we are impressed with Constellation Brand’s consistent focus on brand building and its initiatives to include new products in its wine and spirits businesses, which are the key revenue drivers for the stock. Moreover, the company is increasing its distribution points in retail and effectively executing its strategic merchandising initiatives to bolster sales.”

Separately, analysts at RBC Capital initiated coverage on shares of Constellation Brands in a research note to investors on Monday, November 25th. They set an “outperform” rating and a $86.00 price target on the stock. Four investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Constellation Brands presently has a consensus rating of “Buy” and an average target price of $64.45.

Constellation Brands (NYSE:STZ) traded down 0.26% during mid-day trading on Monday, hitting $75.60. The stock had a trading volume of 633,833 shares. Constellation Brands has a 1-year low of $28.37 and a 1-year high of $81.56. The stock has a 50-day moving average of $73.17 and a 200-day moving average of $62.79. The company has a market cap of $14.369 billion and a P/E ratio of 7.71.

Constellation Brands (NYSE:STZ) last posted its quarterly earnings results on Wednesday, January 8th. The company reported $1.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.91 by $0.19. The company had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the previous year, the company posted $0.63 earnings per share. The company’s revenue for the quarter was up 88.2% on a year-over-year basis. Analysts expect that Constellation Brands will post $3.19 EPS for the current fiscal year.

Constellation Brands, Inc, is a wine company. The Company is a marketer of imported beer in the United States.

To view Zacks’ full report, visit www.zacks.com

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