Morgan Stanley Warns on Constellation’s Beer Business

Dear Client: Not many bears out there on Constellation these days. But on Friday Morgan Stanley's Dara Mohsenian downgraded Constellation to equal weight from overweight, seeing "limited further upside" in stock price, but also a riskier time for the company's beer portfolio as they cycle large Corona extension innovations. "Our downgrade is also tied to timing ahead of what we view as a period of increasing beer demand risk as STZ cycles its very successful Premier launch (and Familiar expansion)