SAM - Boston Beer Company downgraded by RBC as bottom remains elusive

Boston Beer Company ( NYSE: SAM ) caught another downgrade on Thursday as RBC indicated it expects “volume woes” to persist.

The bank announced a reduction of its rating from a Buy-equivalent to a Neutral-equivalent while slashing its price target from $488 to $331. Shares of the Boston-based brewer fell in Thursday’s premarket trading, adding to an over 40% decline since the start of the year.

“While we acknowledge our downgrade could have happened earlier, it is clear to us, SAM's volume woes have not hit a bottom just yet (we expect another downgrade to guidance),” the note to clients announcing the action read.

It added that recent checks with distributors suggest the company is not moving swiftly enough to correct the stock’s bearish trend.

“We think it is best to sit on the sidelines until we get more comfort with volume trends and incrementality of innovation,” the note concluded. “Given the rate of downward revisions over the last [year], earnings volatility and need for further demand stabilization, we believe the earnings outlook is volatile.”

Read more on the recent ratings reassessments across the beer industry offered by Goldman Sachs .

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