STZ - Constellation Brands moves higher after Roth MKM upgrade

2023-05-30 08:43:49 ET

Roth MKM upgraded Constellation Brands ( NYSE: STZ ) to a Buy rating from Neutral on Tuesday. Underpinning the bullish outlook on the beer stock, the firm thinks warmer weather will bring accelerating share gains for Modelo Especial and Corona.

Analyst Bill Kirk: "For April, much of the Bud Light share losses went to other Premium Light products, but substitution should shift seasonally into STZ's favor (i.e. Corona and Bud Light overlap more in summer than the spring). We anticipate shipments and depletion upside to consensus expectations and any weakness in Wine to be overshadowed."

The overall view on Constellation Brands ( STZ ) is that the alcoholic beverage company has continued to impress with the unrelenting demand for Modelo Especial, reliable cash generation of Corona, and incremental contribution from Pacifico.

Roth MKM set a price target on STZ of $270. Shares of Constellation Brands ( STZ ) moved up 1.34% in premarket trading to $235.99 vs. the 52-week trading range of $208.12 to $261.32.

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