New York-based Castle Brands (ROX), a small-cap liquor distributor, currently has a Buy recommendation on its shares from Zacks senior consumer goods industry analyst Steven Ralston, CFA. We found out why by checking out his latest company update:

"Castle Brands is a small capitalization company in the premium spirits industry. The company has an established distribution network in the United States. Despite rapid sales growth garnered through strategic relationships, joint ventures and acquisitions, the company has consistently operated at a loss, being funded by financing activities, including its IPO in April, 2006 and a private placement in May, 2007.

"The value of the company is in its distribution network and the national distribution agreements for certain brand name premium spirits. A Buy rating is maintained due to valuation.

"The company's products are imported distilled spirits, and all are produced outside the United States. The imported segment of the distilled spirits market has experienced significantly greater historical growth than that the distilled spirits market as a whole. Between 2000 and 2005, imported vodka, imported rum, imported liqueurs, and Irish whiskey have grown 72%, 50%, 43% and 50%, respectively."

Read the full analyst report on ROX