Will This Price Target Increase Help Constellation Brands (STZ) Stock Today?

Story updated at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Citigroup (C) raised its price target for Constellation Brands (STZ) to $90 from $80 Friday.

Shares of Constellation Brands fell 0.7% to $79.54 in morning trading.

The bank maintained its "neutral" rating for the wine, beer, and spirits maker. Analyst Wendy Nicholson also raised estimates for Constellation Brands, citing higher beer growth.

"Consistent with the scanner data we had been seeing in Nielsen-tracked channels, STZ's beer segment posted robust growth once again," Nicholson wrote. "More specifically, sales were up 13.2% YoY, while depletions were up 11.6%, driven by consumer demand, sales execution and incremental marketing investments. Notably, 4Q sales growth benefitted from an easy comp of +1% in the year-ago quarter. On a channel basis, we note that depletions in draft grew over 35% for the quarter, with STZ focused on its draft opportunity having recently expanded Corona Light to over 100 distributors and 35 new markets. We note that STZ's overall gross margin came in at 42.6% (over 300 bps ahead of our forecast) largely owing to greater efficiencies in the beer segment (which more than offset some margin weakness in wine & spirits owing to higher promotional activity)."

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TheStreet Ratings team rates CONSTELLATION BRANDS as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

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