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Company News

BUZZ-Constellation Brands to outperform even if pot bet yields no return - GS

** Corona beer maker’s shares up 2.4 pct at $154.50 premarket after Goldman Sachs raises to “buy” from “neutral”

** Upgrade comes following a 12 pct drop on Weds, after STZ cut FY profit guide, partly blaming costs related to its $4 bln investment in pot maker Canopy Growth Corp

** Goldman Sachs says STZ shares could outperform even if investors assign $0 to its investment in Canopy Growth

** Post sizeable selloff, shares now present a compelling risk/reward, GS says, adding STZ could tread water near term as investors grapple with wine disappointment, softer beer margins

** Still brokerage sees path for out-performance, saying beer sales growth should remain health and beer margins will be stable to improving

** Canopy Growth’s weak results in Nov. resulted in a $164 million decrease in the fair value of STZ’s investment in Q3

** STZ had fallen nearly 30 pct in 2018 (Reporting by Amy Caren Daniel in Bengaluru)

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