Stifel Nicolaus downgraded Constellation Brands (STZ
) to hold, explaining that the shares will likely continue to remain range bound.
Analyst Mark Swartzberg says the company's fourth quarter results demonstrate that its revenue growth is slowing. He also notes that management attributes much of this to comparisons, which were difficult. Even so, growth still disappointed and this signaled to him a more fundamental lack of momentum in the company's wine business. Second, he's becoming more convinced that any outcome regarding import rights to Modelo's brands in the Eastern U.S. is likely to be no better than neutral to the economic profile of the shares.