What to expect when beer king Constellation Brands reports earnings Thursday morning

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We're bullish on Constellation Brands (STZ) ahead of its earnings print, even as consumers are pressured in a tough economy.

Lots of Wall Street firms are getting out ahead of this week's earnings from Constellation Brands with price target increases. The latest burst of optimism around this Mexican beer powerhouse appears to be warranted as alcohol sales tend to hold up even when consumers are watching every dollar they spend as they are now. Constellation is set to release results for the three months ending in August on Thursday before the opening bell.

Wells Fargo, JPMorgan and Goldman Sachs are among the other firms recently increasing their price targets. In fact, last month, we wrote about Goldman's $30-per-share PT increase to $305 based on Constellation's ability to generate total beer sales growth "at the high-end of management's 7% to 9% growth" in the coming five years, given "very strong" beer volume trends. Constellation certainly has the beers people want to drink.

 

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