CNBC Stock Blog

Booze & Beer Look Better: Analyst Ups Constellation Price Target

Constellation Brands got a lift Tuesday when UBS analyst Kaumil Gajrawala  raised his 12-month target share price to $21 from $18.

The alcoholic-beverage maker's shares have gained at least 15 percent over the past month. But Gajrawala said Constellation stock is still "cheapest" in its sector.

The analyst said that the hard-drink sector in general will rise along with other discretionary goods as the economy rebounds. And he believes Constellation is uniquely positioned to thrive, with warm-weather offerings like Corona beer and promising later-year niches like furnishing wine to resurgent eateries.

Earlier this month, Constellation forecast that it would earn between $1.53 per share and $1.68 per share for its current fiscal year, beginning March 1. Gajrawala labeled that estimate too conservative, calling for $1.75 per share profit.

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Disclosure information was not available for Gajrawala or his company.