Constellation Brands, Inc. Class A’s (STZ) “Buy” Rating Reaffirmed at Pivotal Research

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Pivotal Research reiterated their buy rating on shares of Constellation Brands, Inc. Class A (NYSE:STZ) in a research note issued to investors on Wednesday morning. Pivotal Research currently has a $265.00 target price on the stock.

“We estimate interest expense will rise about $40 million per quarter and the company will not be buying back shares or doing other acquisitions until the debt returns to 3.5x EBITDA. We estimate pro forma Debt/ 2019 EBITDA to be 4.7x after this deal. Thus, in the short-term, this is quite a big negative. Our FY19 EPS estimate goes to $9.08, down from $9.60 (guidance $9.40 – $9.70). For FY20 our estimate goes to $9.65, down from $10.85. The estimate cut is driven by 1) higher interest expense; 2) higher share count since we had assumed share repurchase in the model; and 3) the lack of any meaningful benefit flowing through at the equity line as a current return on the investment.”,” the firm’s analyst commented.

Several other equities analysts also recently commented on STZ. Stifel Nicolaus dropped their target price on Constellation Brands, Inc. Class A from $230.00 to $224.00 and set a hold rating for the company in a research report on Monday, July 2nd. ValuEngine upgraded Constellation Brands, Inc. Class A from a hold rating to a buy rating in a research report on Thursday, June 28th. Deutsche Bank dropped their target price on Constellation Brands, Inc. Class A to $234.00 and set a buy rating for the company in a research report on Thursday, July 5th. Morgan Stanley dropped their target price on Constellation Brands, Inc. Class A from $262.00 to $258.00 and set a buy rating for the company in a research report on Tuesday, July 3rd. Finally, OTR Global downgraded Constellation Brands, Inc. Class A to a positive rating in a research report on Friday, June 15th. Five research analysts have rated the stock with a hold rating, eighteen have given a buy rating and one has assigned a strong buy rating to the company. Constellation Brands, Inc. Class A presently has an average rating of Buy and an average target price of $246.34.

Constellation Brands, Inc. Class A stock opened at $203.93 on Wednesday. The company has a quick ratio of 0.77, a current ratio of 1.81 and a debt-to-equity ratio of 0.89. The stock has a market capitalization of $40.78 billion, a price-to-earnings ratio of 23.39, a PEG ratio of 1.93 and a beta of 0.03. Constellation Brands, Inc. Class A has a 12 month low of $195.89 and a 12 month high of $236.62.

Constellation Brands, Inc. Class A (NYSE:STZ) last posted its earnings results on Friday, June 29th. The company reported $2.20 EPS for the quarter, missing the consensus estimate of $2.42 by ($0.22). The firm had revenue of $2.05 billion during the quarter, compared to the consensus estimate of $2.05 billion. Constellation Brands, Inc. Class A had a net margin of 31.51% and a return on equity of 19.81%. Constellation Brands, Inc. Class A’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.34 earnings per share. research analysts anticipate that Constellation Brands, Inc. Class A will post 9.57 EPS for the current year.

The business also recently declared a quarterly dividend, which will be paid on Friday, August 24th. Stockholders of record on Friday, August 10th will be paid a $0.74 dividend. The ex-dividend date is Thursday, August 9th. This represents a $2.96 annualized dividend and a dividend yield of 1.45%. Constellation Brands, Inc. Class A’s payout ratio is 10.67%.

Several hedge funds have recently modified their holdings of STZ. Sun Life Financial INC grew its stake in Constellation Brands, Inc. Class A by 155.3% during the second quarter. Sun Life Financial INC now owns 457 shares of the company’s stock worth $100,000 after purchasing an additional 278 shares during the period. Clarus Wealth Advisors acquired a new stake in Constellation Brands, Inc. Class A during the second quarter worth approximately $111,000. Benjamin F. Edwards & Company Inc. grew its stake in Constellation Brands, Inc. Class A by 227.3% during the second quarter. Benjamin F. Edwards & Company Inc. now owns 527 shares of the company’s stock worth $115,000 after purchasing an additional 366 shares during the period. Jacobi Capital Management LLC grew its stake in Constellation Brands, Inc. Class A by 103.6% during the first quarter. Jacobi Capital Management LLC now owns 507 shares of the company’s stock worth $116,000 after purchasing an additional 258 shares during the period. Finally, Stelac Advisory Services LLC acquired a new stake in Constellation Brands, Inc. Class A during the second quarter worth approximately $125,000. 73.66% of the stock is owned by institutional investors.

About Constellation Brands, Inc. Class A

Constellation Brands, Inc, together with its subsidiaries, produces, imports, and markets beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company sells wine across various categories, including table wine, sparkling wine, and dessert wine. It provides beer primarily under the Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico, and Victoria brands, as well as Funky Buddha, Obregon Brewery, and Ballast Point brands.

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Analyst Recommendations for Constellation Brands, Inc. Class A (NYSE:STZ)

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