TAP - Boston Beer Company Gets A Spicy Buy Upgrade From Analyst Amid Other Beer Brands - Read Why | Benzinga
Jefferies analyst Kaumil Gajrawala upgraded Boston Beer Company, Inc (NYSE:SAM) to Buy from Hold, raising the price forecast to $360 from $335.
Boston Beer has gone through several boom-bust cycles, but over time, value was created with higher highs and higher lows, the analyst writes.
The company’s beer and cider brands continue to decline, in line with the category. Collectively these brands are ~28%, Gajrawala notes.
However, reduced SKU complexity and refocused marketing could stabilize the business as category trends moderate. Given their relative size to Twisted/Truly, their headwinds should have minimal effect on total company trends going forward.
In addition, easing supply chain costs, higher in-house production, and efficiency measures support gross margin returning to normalized levels (high 40s %) over the medium term.
A clean ...