J.P. Morgan Maintains Neutral on Constellation Brands

J.P. Morgan is out with its report today on Constellation Brands STZ, maintaining Neutral. In a note to clients, J.P. Morgan writes, "We rate STZ Neutral at 11.6x consensus NTM estimates. Category trends are improving, and the company is improving the overall business by focusing on margin accretion and organic growth. Based on the current multiple (which is within its 2- and 5-year average to the beverage sector) and projected LSD EPS growth, we think valuation is fair." J.P. Morgan has a $21 PT on STZ. Shares of STZ closed Wednesday at $22.71, down 0.31% from Tuesday's close.