RBC Capital lowered the firm’s price target on Constellation Brands (STZ) to $289 from $293 and keeps an Outperform rating on the shares. The stock has been virtually flat over the past five years despite delivering on most of its commitments with shareholder friendly capital allocation, 7%-9% beer top line growth and industry-leading margins, and significantly improved the shareholder structure, the analyst tells investors in a research note. RBC adds that now the company is facing a plethora of headwinds, which will manifest in a poor February quarter and a likely cut to the company’s medium-term beer algo.
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