Cowen has named Corona beer maker Constellation Brands as its top stock idea for 2019.
According to analyst Vivien Azer with the firm, since Constellation first announced its $4 billion investment in Canopy Growth a few months ago, shares have fallen almost 15 percent. This is a good entry point says Azer.
She has said that Constellation’s investment is “a strategic long-term investment that should pay dividends as the Canadian adult use market sorts itself out and sales continue to ramp, in addition to the international medical opportunity.”
“Constellation Brands remains our overall top pick as we approach 2019. Best in class revenue growth within U.S. beer, coupled with strong profitability has afforded them the opportunity to leverage this strong operating performance,” Azer wrote.
“While Constellation’s sales have slowed some, they are still growing double digits in Nielsen tracked channels,” the analyst wrote. She said there is still enough room for the company “to continue to capture market share gains and generate strong revenue growth.”
