UBS raises its target price for Constellation Brands to $28, reiterates buy (STZ)

UBS raised its target price for Constellation Brands Inc (NYSE:STZ) to $28 from $25 today and reiterated its buy rating on the company.

The bank cited improving trends in wine, beer, and spirits, and specifically believes the wine business will begin to grow inline with what is a strong category at 4% growth.

UBS also raised its full year EPS estimate to $2.02 from $1.98, vs. the consensus estimate for $1.97 per share.

Constellation Brands has a potential upside of 5.1% based on a current price of $21.35 and an average consensus analyst price target of $22.43.

Constellation Brands is currently below its 50-day moving average (MA) of $21.74 and should find support at its 200-day MA of $20.06.

In the last five trading sessions, the 50-day MA has climbed 0.59% while the 200-day MA has risen 0.31%.

Constellation Brands, Inc. produces and markets beverage alcohol in North America, Europe, and Australia, and New Zealand. The Company has a portfolio of brands across the wine, imported beer, and distilled spirits categories. Constellation conducts its business through wholly owned subsidiaries as well as through a variety of joint ventures with various other entities.