Argus Downgrades Constellation Brands (STZ) to Hold

Argus analyst John Staszak downgraded Constellation Brands (NYSE: STZ) from Buy to Hold.

The analyst comments "We are downgrading Constellation Brands Inc. (NYSE: STZ) to HOLD from BUY. Despite a strong 3Q20, we think further upward revisions to guidance are unlikely in FY21. We worry that beer sales could decelerate and divestitures in the wine and spirits division could continue to be a headwind. Moreover, the company's equity investment in Canopy Growth reduced earnings by $0.25 in 3Q20, and should continue to pressure earnings amid a large number of competitors. Should beer sales remain stronger than we anticipate or wine and spirits sales come in better than we expect, we would consider an upgrade."

For an analyst ratings summary and ratings history on Constellation Brands click here. For more ratings news on Constellation Brands click here.

Shares of Constellation Brands closed at $193.59 yesterday.

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