Constellation Brands initiated with a Buy at Needham

Needham analyst Gerald Pascarelli initiated coverage of Constellation Brands (STZ) with a Buy rating and $280 price target The firm sees the company as the best name in the Beverage space from a fundamental perspective, and given their historical and consistent relative levels of outperformance, combined with improved capital allocation and corporate governance, believes that its shares should be trading higher, the analyst tells investors in a research note. Tariffs will remain top of mind, and likely an overhang on potential multiple expansion over the near-term, but the firm has been encouraged by the recent improvement in category growth and market share gains for Constellation, Needham adds.