The CAGNY conference saw some key stocks move and we want to briefly touch on some of the highlights to be aware of and why. Analysts are giving feedback on some of the retailers that presented last week at the CAGNY conference.
RBC Capital’s Nik Mondi says Constellations Brands (NYSE:STZ) management noted that Canopy’s (NYSE:CGC) results are consistent with expectations and beer margins are only likely to see near-term upside via incremental pricing or less COGS inflation than currently modeled.
“We reiterate our long-held view that further beer margin upward revisions are not required for long-run value creation and we would rather see Constellation reinvest to maintain top-line momentum, writes Mondi. RBC keeps an Outperform rating on STZ.
Altria (NYSE:MO) delivered a CAGNY talk in line with expectations, according to RBC. “We note that the buyside is likely within the company’s stated guidance range and management has a track record of conservatively guiding at the onset of the year,” writes Mondi. “We remain bullish on MO, which now offers a 6.3% dividend yield,” he adds.
Wells Fargo analyst Bonnie Herzog had her eyes on Coca-Cola’s (NYSE:KO) presentation, saying her team came away with continued confidence on Coca-Cola’s best-in-class organic growth. Coca-Cola’s robust underlying category fundamentals, solid pricing power in developed markets and the potential for strong volume growth in emerging markets are all seen as potential catalysts. “We remain optimistic & reiterate our Outperform rating and $50 price target,” sums up Herzog.
Stocks that rallied off their CAGNY presentations included Church & Dwight (NYSE:CHD), Philip Morris International (NYSE:PM) and J.M. Smucker (NYSE:SJM). Of these, PM made perhaps the most impressive moves and we were able to capitalize on it.
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