April 22, 2019 / 12:48 PM / a month ago

BUZZ-Constellation Brands: Jefferies raises PT on modified Canopy warrants

** Jefferies hikes PT on Corona maker by $8 to $275 after co modified warrants agreement with Canopy Growth Corp

** STZ modified warrants following Canopy’s proposed acquisition of Acreage Holdings

** STZ agreed to waive its veto rights to Canopy-Acreage deal subject to certain proposed modifications to warrants; Brokerage says amended terms of warrants adds over $1 bln in value for Constellation

** Jefferies says a later expiry, among other terms, on warrants gives STZ greater ability to return capital and observe the Cannabis industry unfold; Constellation owns over a third of Canopy in equity

** Jefferies thinks STZ also stands to benefit from Canopy- Acreage deal, should Cannabis get federal approval in the U.S., maintains “buy”

** 18 of 24 brokerages rate STZ “buy” or higher, rest “hold”; median PT $223

** STZ up 23.6% YTD (Reporting by Ahmed Farhatha)

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