Boston Beer (SAM – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Eric Serotta from Morgan Stanley maintained a Sell rating on the stock and has a $290.00 price target.
Eric Serotta has given his Sell rating due to a combination of factors that raise concerns despite Boston Beer’s positive first-quarter earnings report. While the company witnessed a headline depletions beat and a solid gross margin upside, the year-to-date depletions were still trending downward at -2% year-over-year, which is slightly worse than the consensus. Additionally, there’s a noticeable slowdown in the growth of Twisted Tea, which has been evident from the scanner data, shifting from mid-30% growth last summer to the mid-high teens more recently.
Furthermore, Truly’s volume has been declining at a rate in the low -20%s, making the outlook for volume growth this year pessimistic. Despite the increase in the fiscal year gross margin assumptions and the raised earnings per share forecasts for FY24/25, Serotta remains skeptical about the company’s top-line trends. This skepticism, coupled with the overall negative depletion rates and deceleration in key product lines, underpins the rationale for maintaining an Underweight rating on Boston Beer’s stock.
According to TipRanks, Serotta is an analyst with an average return of -13.2% and a 47.37% success rate. Serotta covers the Consumer Defensive sector, focusing on stocks such as Boston Beer, Coca-Cola Europacific Partners, and Celsius Holdings.
In another report released yesterday, Goldman Sachs also maintained a Sell rating on the stock with a $250.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Boston Beer (SAM) Company Description:
Boston Beer Co., Inc. engages in the business of alcoholic beverages. Its brands include Samuel Adams, Twisted Tea, Angry Orchard, and Truly Hard Seltzer. The company was founded by C. James Koch in 1984 and is headquartered in Boston, MA.
Read More on SAM:
- SAM Earnings this Week: How Will it Perform?
- The Boston Beer Company Debuts First-of-its-Kind Non-Alc Beverage, General Admission, Available Now via Direct-to-Consumer Shipping
- Boston Beer price target lowered to $310 from $340 at Evercore ISI
- Dogfish Head Expands Distribution of Spirits-Based RTD Cocktails to Western Canada
- Boston Beer price target lowered to $315 from $350 at Citi
