CONSTELLATION BRANDS : Jefferies confirms its Buy recommendation
April 12, 2024 at 08:49 am EDT
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The analyst firm confirms its Buy recommendation on the stock, with a price target of $314.
' The beer sector is on the rise and should continue to do so, with gains in shelf space. Wines and spirits continue to struggle - a cause for concern in this sustainable volume growth sector, which is characterized by rising margins, better FCF and (potentially) higher returns on investment' says Jefferies in its analysis of the day.
' At 14 times EBITDA, the shares have not yet been fully valued', says the analyst firm.
With EPS of $12.06 and FCF of $1.5 billion for the past year, Constellation Brands is expecting target ranges of $13.50 to $13.80 and $1.4 to $1.5 billion for 2024.
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Constellation Brands, Inc. is one of the leading American producers of wines, spirits and beers. Net sales (before intra-group eliminations) break down by family of products as follows:
- beer (76.2%): Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Modelo Chelada, Pacifico and Victoria brands;
- wines (17.6%): Robert Mondavi, Simi, Mark Xest, Kim Crawford, Estancia, Clos du Bois, Black Box brands, etc.;
- spirits (2.7%): Svedka Vodka, Casa Noble and High West brands;
- other (3.5%).
The United States account for 97.3% of net sales.