Constellation Brands price target lowered to $284 from $298 at Roth MKM

Roth MKM lowered the firm’s price target on Constellation Brands (STZ) to $284 from $298 and keeps a Buy rating on the shares after its Q3 earnings miss and lowered guidance. Beer depletions were up 3.2% and marked a selling-day adjusted deceleration, though the stock’s 15% decline in the subsequent two sessions is “too dramatic”, the analyst tells investors in a research note. Modelo is unlikely to have reached saturation, and even near-term headwinds such as L.A. fires present longer-term re-construction tailwinds, Roth states, adding that the trajectory of key brands Modelo/Corona/Pacifico is unchanged.