Constellation Brands price target lowered to $260 from $305 at Citi

Citi lowered the firm’s price target on Constellation Brands (STZ) to $260 from $305 and keeps a Buy rating on the shares. The company reported a “very soft” fiscal Q3 with misses across all key metrics, including worse than expected beer sales growth of 3.2% on 1.6% shipments, the analyst tells investors in a research note. However, post the large negative stock reaction, Citi believes Constellation’s valuation reflects many of its concerns. It remains Buy-rated but acknowledges the stock “will likely remain in the penalty box near-term.”