BofA downgraded Constellation Brands (STZ) to Underperform from Neutral with a price target of $150, down from $182. Beer industry consumption remains soft, creating risk to sales, margin and the multiple, says the analyst, who contends that the stock is still “not cheap” despite shares being down 26% year-to-date. Other risks include the company’s core Hispanic demographic remaining pressured, longer term alcohol consumption trends and the continued capacity buildout in Mexico, the analyst tells investors.
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