Morgan Stanley Downgrades STZ To EW

Morgan Stanley is downgrading Constellation Brands, Inc. STZ to EW, “given we believe valuation is now reasonable after recent stock outperformance.” “STZ is now trading slightly above our prior $21 price target after a large 39% jump in the stock in 2010 (vs. a 13% S&P 500 increase),” Morgan Stanley writes. “We are removing our price target, but are raising our base case to $25 (based on 12.0x C2012e EPS and 9.0x EV/EBITDA multiples), given a higher market multiple and that we are rolling forward our valuation by one year.” Constellation Brands currently trades at $21.55.