Morgan Stanley reiterates a positive outlook on Constellation Brands (STZ) after attending the Beer Marketing Insights seminar in New York.
Analyst Dara Mohsenian and team say Constellation is an outlier in the sector as consumption trends shift to the high end.
“STZ stands out among a peer set of these secular growth peers (EL/MNST/BFB) from a valuation standpoint, trading one standard deviation below its average vs these peers from the last two years, suggesting room for sentiment to turn more positive on STZ as beer and wine fundamentals positively surprise,” reads the analyst note.
Morgan Stanley rates Constellation at Overweight and assigns it a price target of $245 (14% upside). The bull case price target is $277 (28% upside) if beer margins expand.
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