Constellation Brands Inc (NYSE:STZ) stock is up 0.3% to trade at $151.92, after an upgrade from Citigroup to "buy" from "neutral," to go with a price-target hike to $175 from $150. The analyst in coverage expects faster beer sales growth in the fourth quarter into fiscal 2027, with higher demand during the FIFA World Cup, especially with Modelo, the U.S.' top-selling beer.
STZ has struggled with overhead pressure at the 20-day moving average since a Feb. 12 bear gap. The shares are holding their +10% year-to-date level today, but are down 15.3% in the last 12 months.
Keep an eye on an unwinding of pessimism. The brokerage bunch was split on STZ coming into today, with 12 of the 24 firms in coverage still carrying a "hold" or worse rating. Meanwhile, short interest makes up 5.6% of the equity's available float, despite short interest falling by 14% in the last month.
Options are affordable, per Constellation Brands stock's Schaeffer's Volatility Index (SVI) of 36% that ranks higher than 20% of readings from the past year. This indicates near-term option traders are pricing in relatively low volatility expectations.
