Here's why analysts like Corona beer maker Constellation Brands heading into its earnings report

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The Street is upbeat on the company's durable business, which fits our investment thesis on the company.

Wall Street analysts are upbeat about Constellation Brands heading into its earnings release before the opening bell Thursday, noting the durability of the beer and wine company's business — a view shared by the Club. Constellation has a lock on Mexican beer, with its Corona, Modelo and Pacifico brands. The company's wine portfolio includes Robert Mondavi, Simi and Woodbridge. In its fiscal second quarter, analysts are expecting Constellation to report earnings-per-share of $2.

Morgan Stanley address that issues, saying they believe Constellation could raise its full year guidance to $11.40 to $11.70 adjusted EPS . Drivers include accelerating sales growth, strong beer trends and market share expansion, which are factors that could also benefit its valuation, the research note explains. Credit Suisse is also expecting a positive quarter. Analysts estimate top-line growth to continue as the company's beer business remains a key market driver.

 

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