Boston Beer Company (SAM) PT Lowered to $685 at Jefferies as Visibility is Now "Murky"

July 23, 2021 8:39 AM EDT
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Price: $524.36 +1.41%

Rating Summary:
    9 Buy, 12 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 8 | New: 24
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Jefferies analyst Kevin Grundy lowered the price target on Boston Beer Company (NYSE: SAM) to $685.00 (from $760.00) after 2Q depletions/EPS of 24%/$4.72 missed Street est. of 39%/$6.67 and SAM cut its FY21 depletions outlook to 25-40% YoY (40-50% prior) and EPS to $18-$22 vs. $22-$26 prior, Street Consensus was $24.76.

The analyst reiterated an Underperform rating, stating "With ~50% of SAM's portfolio levered to hard seltzers, the co. cut its shipments / depletions outlook to +25-40%, which is now predicated on +20-50% seltzer category growth (vs. ~60-90%/~70-100% prior/initial outlook). Notably, mgmt. withdrew its formal seltzer category guidance, now calling +20-50% "reasonable," but caveated that it is based on third party ests. and visibility is "murky.""

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