Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

JP Morgan Cuts Opinion on Constellation Brands


JP Morgan cut its investment recommendation on Constellation Brands (STZ) to neutral from overweight.

Analyst Dara Mohsenian cited increased concern that the company's organic growth in the second half will be limited by continued international weakness, decelerating US wine pricing and less seasonal contribution from beer. Although the company keeps its $1.62 fiscal year 2006 (ending February) earnings per share estimates given flexibility with Mondavi synergies, it believes the company needs to post a positive earnings per share surprise, to continue to see multiple expansion after a large run over the last year. The company doesn't expect further valuation upside given the belief that organic growth could slow in the second half. The company noted current valuation well above its historical three-year average.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus