Constellation Brands price target lowered to $215 from $238 at MKM Partners

MKM Partners analyst Bill Kirk lowered the firm’s price target on Constellation Brands to $215 from $238 and keeps a Neutral rating on the shares after its Q3 earnings miss. The company has had 15 months of little to no earnings growth while carrying Modelo risk, and while the management expects Modelo to rebound in the next few months, it is still signaling that FY24 will offer little earnings growth, the analyst tells investors in a research note. At 14-times enterprise value to expected EBITDA on new consensus numbers, asking investors to carry the risk that Modelo does not rebound is "too large of an ask", Kirk adds.