This morning, Goldman Sachs downgraded shares of Constellation Brands (NYSE:STZ) from Neutral to Sell as the firm expects wine sales to trend lower. Analysts at Goldman see the company losing market share to other competitors as pricing wars continue among the lower tier wines. With the downgrade, the firm lowered its 2010 and 2011 EPS estimates to reflect the weaker wine sales going foward.
In morning trading, shares of Constellation Brands were heading lower, off more than five percent following the downgrade.
And Wells Fargo downgraded Boardwalk Pipeline Partners (NYSE:BWP) from Outperform to Market Perform as the stock price has appreciated recently. The firm believes this limited partnership is well positioned to continue returning value to shareholders, but the current stock price does not make this company more compelling than others in the sector. With the downgrade, Wells Fargo set a valuation range of $27 to $29 per share.
Shares of Boardwalk Pipeline Partners were trading lower on the downgrade, off more than two and a half percent this morning.
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