Constellation Brands: Jefferies raises target price

(CercleFinance.com) - Jefferies reinstates its "buy" recommendation on the Constellation Brands stock and raises its target price from 270 dollars to 281 dollars, stating that the share has a favourable risk-return profile in the run-up to the publication of its Q2 results on 3 October.


"W/ strong +10% growth in Nielsen data in beer supportive of another strong qtr," the broker points out, which has raised its organic sales growth estimate to 7.5% for beer (against under 7% for the market).

Jefferies also believes the group is likely to raise its EPS estimate for fiscal year 2020, which is currently between 8.65 dollars and 8.95 dollars, excluding Canopy, thanks to the timing of a dilutive wine divestment on EPS.

The market seemed to agree, with the share up 0.6% in early trading on Wall Street on Tuesday.


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