• • Cowen names Constellation Brands a top stock idea for 2019, highlighting the brewer's revenue growth, profitability and investment in the cannabis industry.
  • Since Constellation first announced its $4 billion investment in Canopy Growth, shares have fallen almost 15 percent, a good entry point, Azer says.
  • The cannabis investment is "a strategic long-term investment that should pay dividends as the Canadian adult use market sorts itself out," she added.

Thomas Franck| @tomwfranck

Published 4:37 PM ET Mon, 10 Dec 2018  Updated 6:05 PM ET Mon, 10 Dec 2018

Constellation Brands's relatively healthy revenue growth in the U.S. beer market, paired with strong profitability and a new investment in cannabis makes the stock one of Cowen's top stock picks heading into 2019.

Since the Corona maker first announced its $4 billion investment in Canopy Growth, shares have fallen almost 15 percent, providing savvy investors with a good entry point, analyst Vivien Azer wrote Monday. Azer, who is one of just a few analysts covering the cannabis industry, said early fears that Constellation may have overpaid for its stake in Canopy should quiet as the Canadian adult use market stabilizes.

Constellation Brands's relatively healthy revenue growth in the U.S. beer market, paired with strong profitability and a new investment in cannabis makes the stock one of Cowen's top stock picks heading into 2019.

Since the Corona maker first announced its $4 billion investment in Canopy Growth, shares have fallen almost 15 percent, providing savvy investors with a good entry point, analyst Vivien Azer wrote Monday. Azer, who is one of just a few analysts covering the cannabis industry, said early fears that Constellation may have overpaid for its stake in Canopy should quiet as the Canadian adult use market stabilizes.

"Constellation Brands remains our overall top pick as we approach 2019. Best in class revenue growth within U.S. beer, coupled with strong profitability has afforded them the opportunity to leverage this strong operating performance," Azer wrote, referring to the stake in Smiths Falls-based Canopy Growth. The cannabis investment is "a strategic long-term investment that should pay dividends as the Canadian adult use market sorts itself out and sales continue to ramp, in addition to the international medical opportunity."

The Svedka vodka producer said in August that it's investing about $4 billion into Ontario-based marijuana grower Canopy Growth, one of the largest bets to date on the burgeoning cannabis industry.

Continue reading at CNBC.com

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