USA: Constellation Brands downgraded to "Equal-weight" amid concerns over long-term beer volume growth

Morgan Stanley downgraded Constellation Brands (NYSE:STZ) to "Equal-weight" amid concerns over long-term beer volume growth due to shifting consumer trends and also on macroeconomic pressures, Yahoo Finance reported on February 27.

The brokerage pointed to structural challenges, including a decline in alcohol consumption among younger generations, increased health and wellness trends, cannabis competition, and muted overall beer industry growth.

�We are EW STZ, with increased concern over long term beer growth, including pressure from health/wellness, less younger age alcohol consumption than in prior generations, cannabis, competition,� analyst said.

It also flagged near-term pressures such as macroeconomic headwinds, Hispanic consumer sentiment post-elections, and high-end light beer discounting.

Morgan Stanley lowered its long-term beer depletion growth assumptions and noted potential earnings risks from possible Mexico tariffs, which could impact margins as Constellation expands capacity. However, it said the company�s already compressed valuation appears reasonable.

�A more mature STZ brand portfolio&muted category growth, but already compressed STZ valuation looks reasonable.�

E-malt.ru, глобальный источник информации для профессионалов пивоваренной индустрии. Два раза в неделю рассылки E-malt.com имеют последние новости отрасли, статистические данные в виде графиков и таблиц, мир ячменя и солода в ценах, и другую соответствующую информацию. Нажмите здесь, чтобы получить полный доступ к E-malt.ru. Если вы являетесь клиентом Castle Malting, вы можете получить свободный доступ к веб-сайту E-malt.ru и публикациям. Свяжитесь с нами для получения дополнительной информации напишите письмо на marketing@castlemalting.com .