The investment firm maintained its $1,800 price target, on the stock saying that Boston Beer has "significantly underperformed recently."
That's nearly twice the Friday close on the stock at a bit above $970. The stock in late April neared $1,350. At last check Boston Beer shares were 2% higher at $989.
"We are raising Boston Beer to our “Best Idea” as we continue to see robust category growth predicated on seltzer category growth of 70% (including on-premise) with the Truly franchise doubling, including about 15 points of growth from the on-premise channel on top of retail sales," analyst Laurent Grandet said.
Truly includes alcoholic flavored seltzer, lemonade and iced tea.
Guggenheim said Truly is on track to meet its 85% retail growth target by gaining another 2% in market share.
Recently TheStreet's Jim Cramer discussed Citi analyst Wendy Nicholson's note on Boston Beer. She had cut her price target to $1,145 from $1,395 while affirming a neutral rating.
Nicholson said that she was concerned about a slowdown in Nielsen data.
She also said investors expected Boston Beer's launch of Truly Tea and Truly Punch to help offset tough comparisons "to a more significant degree than they apparently have."
"That's a tough call," Cramer said. "This stock trades on the Nielsens, and the note -- and a very good analyst -- indicate that the Nielsens have peaked. And there's charts in the note that tell you absolutely that it's peaked."