By Dhirendra Tripathi
Investing.com – Shares of Constellation Brands (NYSE:STZ) and Boston Beer (NYSE:SAM) jumped on Wednesday after a Goldman Sachs (NYSE:GS) analyst reiterated a buy rating on the shares.
Traders ignored the analyst's similar call for Monster Beverage (NASDAQ:MNST).
Constellation shares were up 1.2% and those of Boston Beer 1.7%. Monster Beverage shares fell 2% despite the bullish call by Goldman analyst Bonnie Herzog.
Herzog said these three are the stocks to own in the beverage segment, according to StreetInsider. She cited strong category momentum and robust innovation pipelines as reasons for her positive outlook on the stocks.
Constellation was added to Goldman’s ‘conviction buy’ list in February with the market under appreciating Modelo's momentum and distribution and Corona Hard Seltzer's imminent scalability.
Boston’s advantage in hard seltzer is one of the few big growth opportunities in alcoholic beverages, sustainable and broadly defensible as the category expands with new beverage entrants, StreetInsider quoted Herzog as saying. The analyst said Monster is reflecting topline momentum.