STZ - Constellation Brands tops the S&P 500 Index as sales acceleration continues

Morgan Stanley reiterated an Overweight rating on Constellation Brands ( NYSE: STZ ) after scanner data came in blazing hot again for the alcoholic beverage seller to back up the view that STZ has strong pricing power and high secular topline growth potential.

Analyst Dara Mohsenian said the recent accelerating STZ sales growth in U.S. scanner data has given the firm increased confidence in sustainability of long-term trends. The scanner outperformance is also said to imply short-term upside on an all-channel basis, with the on-premise recovery still underway, and inflation resiliency.

"While there have been some signs of trade-down in the overall beer category with the economy segment posting its strongest growth in years, STZ's recent acceleration should help allay trade-down (and market share) concerns with respect to its high-end portfolio."

Morgan Stanley has a price target of $280 on STZ.

Constellation Brands ( STZ ) was one of the top gainers in the S&P 500 Index on Monday morning with a 1.95% gain. STZ is also well ahead of the S&P 500 Index for the year.

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