11:18 AM EDT, 09/17/2024 (MT Newswires) -- Constellation Brands ( STZ ) has consistently achieved its 7% to 9% beer revenue growth target and Pacifico is expected to be a significant driver of growth moving forward, RBC Capital Markets said in a note Tuesday.

Pacifico is positioned to become a key growth contributor to the company's beer portfolio similar to Modelo Especial and will add "100 basis points to Constellation Brands' ( STZ ) annual volume growth," according to the note.

The brand has significant potential for distribution growth, particularly in "under-penetrated" regions like the Midwest, Northeast and South, and increasing distribution points will be a critical driver of Pacifico's future growth, the firm added.

The brand's marketing message resonates with younger demographics and makes it particularly popular among younger consumers, while the growth of the Hispanic populations in the US also benefits Constellation Brands' ( STZ ) beer portfolio including Pacifico, RBC said.

The firm reiterated its outperform rating on Constellations Brands' stock and kept the price target at $308.

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