Citi analyst Wendy Nicholson upgraded Boston Beer to Buy from Neutral with a price target of $448, up from $394. The hard seltzer category continues to grow at a "rapid clip," or up 200% year-to-date, Nicholson tells investors in a research note. While the analyst expects there could be some slowdown as we enter the cooler months, she believes the hard seltzer category will continue to grow at a double-digit rate for "as far as we can see." Nicholson admits, however, that Boston Beer's Truly brand will likely continue to donate some market share as the category becomes increasingly fragmented.

Citi lowered the firm's price target on Boston Beer to $315 from $350 and keeps a Neutral rating on the shares as part of a Q1 earnings preview for the beverages and household and personal care group. The firm sees another quarter of gross margin upside but believes the market will not reward earnings beats on margins without solid sales and volume trends.