According to BMO, Constellation Brands shares will rise due to strong demand for beer. Analyst Andrew Strelzik began his coverage of Constellation Brands with an outperform rating, saying that the parent company behind the imported Mexican beer brands Modelo and Corona in the US will continue to see strong demand for its products. “We see no signs of slowing consumer spending on STZ’s major beer brands and expect continued resilience,” Strelzik wrote. “Despite evidence of changes in consumer behavior in other food/beverage categories, measured channel data for STZ’s beer brands and Mexico beer import data remains consistent with previous months – if not further – so we expect continued resilience. Huh.” The analyst expects Constellation Brands to have “ample room” to expand distribution outside its core region and maintain strong beer sales in the coming years. This supports the view that the company’s beer revenue guidance has potential upside. “We believe STZ is an attractive investment with favorable risk/reward because it balances a solid multi-year growth outlook with a valuation discount to peers that is very broad. Bears see potential upside to revenue guidance and expect EPS growth in 2013. FY24,” Strelzik wrote. Constellation has a price target of $290, which is almost 20% higher than Monday’s close of $244.15. The stock has outperformed the broader market this year, falling just 2.7%. —CNBC’s Michael Bloom contributed to this report.