RBC Capital Upgrades Boston Beer Company (SAM) to Outperform

RBC Capital analyst Nik Modi upgraded Boston Beer Company (NYSE: SAM) from Sector Perform to Outperform with a price target of $424.00 (from $346.00).

The analyst comments "Since 2/19, SAM’s multiple has contracted by 25% (from 36.6x to 27.3x), which suggests the market is pricing in nearly 30% earnings risk. Our math suggests EPS risk is closer to 3–5%. We see SAM as relatively insulated from current market dynamics, as on-premise represents only ~15% of SAM sales and Truly should continue to benefit from hard seltzer category growth (as well as pantry loading). We raise our FY’20 shipment growth estimate to 24% (from 20%) and lower our EPS forecast to $10.69 (from $11.04) given that the company will likely become more reliant on third-party manufacturers near-term to keep up with demand."

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 $306.46 yesterday.

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