Constellation Brands downgraded to Hold from Buy at Jefferies

Jefferies downgraded Constellation Brands (STZ) to Hold from Buy with a price target of $201, down from $310. “Constellation missed in all segments and lowered guidance, citing a tough economy, but it is also possible that the “law of large numbers,” Michelin Ultra and Busch Light strength, and a worsening Wine and Spirits business are having an impact, the analyst tells investors in a research note. The firm says that while the shares seem oversold, and Constellation is buying back stock, the shares may trade at this discount until a reacceleration of growth. It sees a “show-me story.” and thinks “it is better to wait than guess.”