Constellation Brands (STZ) delivered a solid Q1 beat with in-line depletions, healthy operating margins, reiteration of its full-year guidance, RBC Capital Markets said in a note Thursday.

The report also said the company was cautiously optimistic on improving June volume trends driven by World Cup activation and easing gas prices.

The note said estimates for Q2 and Q3 move lower on operating

expense and marketing timing on World Cup opportunities while beer volumes and gross margins are improving.

"We view guidance as achievable with upside bias as volume momentum builds," the report said.

RBC maintained its outperform rating and $185 price target.

Price: 138.15, Change: +1.27, Percent Change: +0.93