STZ - Constellation Brands loses bull rating at Cowen on concerns over consumers trading down
Cowen cut its rating on Constellation Brands ( NYSE: STZ ) to Market Perform from Outperform on concerns over the setup for 2023.
Analyst Vivien Azer and team said they have growing concerns over down-trading in the above-premium beer and wine segments due to high pricing. "STZ's industry leading beer margins will also face continued headwinds," warned Azer.
Incremental interest expenses in a rising rate environment are also seen as a drag on profit for STZ.
The firm lowered its price target on Constellation Brands ( STZ ) to $200 from $275 due to being less constructive on the near-term potential. As for the longer term, Azer remains positive on the market share runway for STZ's leading Mexican brands.
Shares of Constellation Brands ( STZ ) fell 0.23% on Friday after peeling off 9.72% on Thursday.
Read the Constellation Brands earnings call transcript.
Secot watch: Beer and wine stocks fall after Constellation Brands warns on costs
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Constellation Brands loses bull rating at Cowen on concerns over consumers trading down