Constellation Brands downgraded to Neutral from Buy at Citi

Citi downgraded Constellation Brands (STZ) to Neutral from Buy with a price target of $200, down from $260. The firm believes the recent beer sales slowdown “could linger” with Hispanic consumer weakness, a soft U.S. beer category, as well as looming tariff risk. Constellation’s beer sales have grown at an average of 12% since 2014 with strong distribution gains, innovation, and faster growth across Hispanic consumers, the analyst tells investors in a research note. However, the firm says depletions slowed to 3% in Q2 and Q3 and its forecast a 2% decline in Q4. Weakness in Hispanic consumers could persist, making it harder for Constellation to gain incremental shelf-space, adds Citi.