Constellation Brands price target lowered to $160 from $176 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Constellation Brands (STZ) to $160 from $176 and keeps an Equal Weight rating on the shares. Fiscal Q2 results were ahead of lowered expectations as Constellation attributed topline weakness to the difficult macro environment, particularly for its core Hispanic consumer. However, the firm also sees structural longer-term headwinds, including health and wellness trends, demographic pressure, cannabis substitution effects, and sustained greater high-end beer competition, the analyst noted.