UPDATE: Pivotal Research Group Initiates Coverage On Constellation Brands

Courtesy of Benzinga.

Pivotal Research Group initiated a Buy rating on Constellation Brands, Inc. (NYSE: STZ) with $110 price target in a report issued Monday.

Analyst Timothy S. Ramey noted the "powerful momentum and growth we see in STZ’s operating sectors – imported beer; premium varietal wines; and spirits make this a best-ever operating environment for Constellation Brands."

"We envision long-tailed, investable trends, likely to drive growth at above-average rates" and Ramey felt that the company will outperform "for at lease three-to-five years to come" driven my Millennial generation consumption.

Ramey estimated "$1.14 for Q3 2015 (consensus is $1.13 expected about Jan. 6th); $4.22 for FY15 (Feb.), consensus is $4.24; and $4.70 for FY16 (consensus is $4.73)."

The report concluded that "Constellation trades at just 17.9x our estimate of FY16 EPS (February 2016) and 14.5x current EV/EBITDA. Our price target of $110 is based on 22.9x FY16 EPS and 14.8 2016 EV/EBITDA."

Constellation Brands, Inc. recently traded at $84.84, up 0.94 percent.

Posted-In: Pivotal Research Group Timothy S. RameyAnalyst Color Price Target Initiation Analyst Ratings