Roth MKM upgraded Boston Beer Co. (NYSE:SAM) to Buy from Neutral and raised its price target on the stock to $386 from $274 in a note to clients on Tuesday.
The upgrade has boosted the stock's performance so far in the session, up over 3% at $328.20 per share.
Roth analysts said that previous areas of caution it had about SAM are now areas of upside.
They explained: "After 1Q, we had two concerns: 1) Truly hadn't stabilized, offsetting Twisted Tea's success and 2) gross margins weren't improving, despite more in-house production."
"Now, we believe Seltzer and Truly will benefit in the summer from Bud Light share losses (occasion overlap increases with warmer weather) and gross margin lift from production shift will be realized in 2Q (given inventory days timing)."