Close

UPDATE: Cowen Downgrades Boston Beer Company (SAM) to Market Perform on Disappointing FY15 Outlook

February 25, 2015 8:12 AM EST
Get Alerts SAM Hot Sheet
Price: $304.42 -1.15%

Rating Summary:
    7 Buy, 16 Hold, 6 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Join SI Premium – FREE
(Updated - February 25, 2015 9:25 AM EST)

Cowen downgraded Boston Beer Company (NYSE: SAM) from Outperform to Market Perform with a price target of $308 (from $335). The change follows Q4 results and guidance. Analyst Vivien Azer pointed to disappointing outlook.

"With the stock having appreciated 43% since mid September, and with 2015 EPS guidance coming in well below expectations, coupled with a downgrade to preliminary 2015 shipment growth, we find the valuation to be rich, given this more muted outlook," said Azer.

"As is customary, SAM provided preliminary guidance for shipment and depletion growth in October, looking for a 10-15% increase in 2015. Today, the company has reduced that outlook to +8-12%. This stands out in particular given that for the first 7 weeks of the year, the company indicated that depletions are up 12%, well within the original guidance range. As well, while management has highlighted that 2015 will face some particularly tough comparisons, and heightened competition, it does not seem that the company's outlook reflects any material benefit from either the national launch of the company's Traveler brand, nor from the line extensions that the company has launched for Rebel IPA," added the analyst.

For an analyst ratings summary and ratings history on Boston Beer Company click here. For more ratings news on Boston Beer Company click here.

Shares of Boston Beer Company closed at $310.71 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS View, Analyst PT Change, Downgrades

Related Entities

Cowen & Co