RBC cuts Constellation target, moves to top idea after selloff

RBC Capital lowered the firm’s price target on Constellation Brands (STZ) to $293 from $308 and keeps an Outperform rating on the shares. The firm says it was expecting a tough quarter for Constellation, “and that is exactly what we got.” The post-earnings selloff “leads us to add the stock back to our top ideas list,” the analyst tells investors in a research note. RBC believes Constellation’s current valuation implies 0% sales growth long-term, which places it in line with long-term beer category growth, and is an “unrealistic assumption.”