Shares of Constellation Brands Inc. rose 0.5% in morning trading Friday, to buck a sharp selloff in the broader stock market, after SunTrust Robinson Humphrey analyst Bill Chappell turned bullish on the beer and hard seltzer seller, and cannabis investor, saying the COVID-19-related pullback has created an "attractive entry point" for investors. That stock has now gained 33.8% amid a 4-day win streak, but was still down 25.5% year to date. In comparison, the S&P 500's was down 3.5% Friday morning and has lost 21.5% this year. Chappell raised his rating on the Corona beer parent to buy, after being at hold since September 2018, and boosted his stock price target to $200 from $150, saying the ocmpany has a "resilient" portfolio and "strong" free cash flow generation. "Second, we believe investor expectations for [Constellation's] beer portfolio growth (ex. COVID-19), new product launches and potential return from its investment in Canopy are now realistic," Chappell wrote in a note to clients. Read More...
Shares of Constellation Brands Inc. rose 0.5% in morning trading Friday, to buck a sharp selloff in the broader stock market, after SunTrust Robinson Humphrey analyst Bill Chappell turned bullish on the beer and hard seltzer seller, and cannabis investor, saying the COVID-19-related pullback has created an “attractive entry point” for investors. That stock has now gained 33.8% amid a 4-day win streak, but was still down 25.5% year to date. In comparison, the S&P 500’s was down 3.5% Friday morning and has lost 21.5% this year. Chappell raised his rating on the Corona beer parent to buy, after being at hold since September 2018, and boosted his stock price target to $200 from $150, saying the ocmpany has a “resilient” portfolio and “strong” free cash flow generation. “Second, we believe investor expectations for [Constellation’s] beer portfolio growth (ex. COVID-19), new product launches and potential return from its investment in Canopy are now realistic,” Chappell wrote in a note to clients.
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