UBS analyst Sean King upgraded Boston Beer Company (SAM) to Buy from Neutral with a price target of $440, up from $415.

The stock closed Monday down $11.20 to $373.12.

The analyst expects continued double-digit sales and earnings growth from Boston Beer in fiscal 2020 and 2021, and sees upside to 2020 shipment and depletion guidance. Truly's "stellar" growth in fiscal 2019 failed to translate into meaningful earnings growth as the company's heavy reliance on co-packers weighed on margins, King tells investors in a research note partially titled "Truly Compounding Growth."

However, this headwind will ease into fiscal 2020 with greater internal capacity coming, adds the analyst.