Constellation Brands Inc. (NYSE:STZ) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Friday. The firm presently has a $173.00 target price on the stock. Zacks Investment Research’s price target suggests a potential upside of 11.92% from the stock’s previous close.

According to Zacks, “Constellation Brands boasts a portfolio of well-known brands and is the largest wine company in the world, which gives it a competitive edge and bolsters its solid market position. The company’s focus on brand building and efforts to include new products in its wine and spirits portfolio are key growth drivers. Also, it remains committed to expanding operations directed toward achieving business growth, as is evident from its numerous acquisitions. These factors, coupled with strong beer business also helped the company to post its eighth and sixth straight earnings and sales beat, respectively in the last reported quarter. The company also raised its fiscal 2017 view, highlighting its solid prospects. However, the risk of increasing taxes continues to be a concern for the company. Intense competition, currency fluctuations and seasonal nature of the company’s business can also dent its operating performance.”

STZ has been the subject of a number of other reports. Citigroup Inc. reiterated a “neutral” rating and issued a $191.00 target price (up from $180.00) on shares of Constellation Brands in a report on Sunday, October 9th. RBC Capital Markets set a $181.00 target price on shares of Constellation Brands and gave the stock a “buy” rating in a report on Wednesday, September 28th. reiterated an “outperform” rating on shares of Constellation Brands in a report on Monday, August 22nd. Bank of America Corp. reiterated a “buy” rating and issued a $185.00 target price on shares of Constellation Brands in a report on Friday, September 30th. Finally, Pivotal Research reiterated a “buy” rating and issued a $200.00 target price on shares of Constellation Brands in a report on Thursday, October 6th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus target price of $178.30.

Analyst Recommendations for Constellation Brands (NYSE:STZ)

Constellation Brands (NYSE:STZ) opened at 154.57 on Friday. The stock has a 50 day moving average of $162.99 and a 200 day moving average of $162.12. Constellation Brands has a 52 week low of $130.23 and a 52 week high of $173.55. The company has a market cap of $31.08 billion, a PE ratio of 26.59 and a beta of 0.59.

Constellation Brands (NYSE:STZ) last announced its earnings results on Wednesday, October 5th. The company reported $1.77 EPS for the quarter, topping the Zacks’ consensus estimate of $1.65 by $0.12. The business earned $2.02 billion during the quarter. Constellation Brands had a net margin of 15.64% and a return on equity of 17.69%. The business’s revenue for the quarter was up 16.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.56 earnings per share. Equities research analysts predict that Constellation Brands will post $6.45 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Tuesday, November 22nd. Stockholders of record on Tuesday, November 8th were given a dividend of $0.40 per share. The ex-dividend date of this dividend was Friday, November 4th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 1.04%. Constellation Brands’s dividend payout ratio (DPR) is 27.49%.

Several hedge funds and other institutional investors have recently made changes to their positions in STZ. Chevy Chase Trust Holdings Inc. raised its position in shares of Constellation Brands by 1.4% in the second quarter. Chevy Chase Trust Holdings Inc. now owns 151,848 shares of the company’s stock worth $25,116,000 after buying an additional 2,091 shares during the period. Exxonmobil Investment Management Inc. TX raised its position in shares of Constellation Brands by 6.6% in the second quarter. Exxonmobil Investment Management Inc. TX now owns 45,664 shares of the company’s stock worth $7,553,000 after buying an additional 2,840 shares during the period. DNB Asset Management AS raised its position in shares of Constellation Brands by 5.1% in the second quarter. DNB Asset Management AS now owns 16,627 shares of the company’s stock worth $2,750,000 after buying an additional 800 shares during the period. Daiwa SB Investments Ltd. acquired a new position in shares of Constellation Brands during the second quarter worth about $134,000. Finally, British Columbia Investment Management Corp raised its position in shares of Constellation Brands by 38.4% in the second quarter. British Columbia Investment Management Corp now owns 96,108 shares of the company’s stock worth $15,896,000 after buying an additional 26,667 shares during the period. Hedge funds and other institutional investors own 75.08% of the company’s stock.

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Constellation Brands Company Profile

Constellation Brands, Inc is an international beverage alcohol company. The Company is a producer and marketer of beer and wine the United States and Canada. Its segments include Beer, Wine and Spirits, and Corporate Operations and Other. It is a multi-category supplier (beer, wine and spirits) of beverage alcohol in the United States.

5 Day Chart for NYSE:STZ

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