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Credit Suisse analyst Kaumil Gajrawala upgraded Boston Beer (SAM) to Outperform from Neutral with a price target of $1,490, up from $1,304, which represents 61% upside potential.

The analyst believes the company is best positioned to navigate the "new rules" of the hard seltzer category. There is too much focus on how large seltzer can be as a percentage of U.S. beer, says the analyst. He thinks that is wrong metric given that 50% of share is gained from wine and spirits.

Gajrawala thinks seltzer could reach 10% of total beverage alcohol by 2025 versus 3.5% today, approaching the size of wine. The category is slowing but Boston Beer's Truly brand momentum is intact, says the analyst.