Constellation Brands downgraded at Morgan Stanley on long-term beer concerns

As previously reported, Morgan Stanley downgraded Constellation Brands (STZ) to Equal Weight from Overweight with a price target of $202, down from $220. Given pressure from health/wellness, less younger age alcohol consumption than in prior generations, cannabis, competition, a more mature Constellation brand portfolio and muted category growth, the firm has increased concern over long-term beer growth, the analyst tells investors. However, the “already compressed” valuation “looks reasonable,” the analyst added.