SAM - Boston Beer rallies after earnings topper while Cowen remains cautious
Cowen keeps a Market Perform rating on Boston Beer Company (SAM) as the firm is cautious on category slowdowns and heightened competition for the beer company. Analyst Vivien Azer: "We view management guidance at risk of being overly optimistic and take our estimates to the low end, looking for FY21 shipment growth of ~40%. Meanwhile, as management continues to struggle with capacity constraints, we take our GM estimate to 46.9% for FY21 while taking A&P spend above the high end of guidance. As such, we take our FY21 and FY22 EPS estimates to $23.91 and $29.68, respectively, and take our PT to $1,300, which reflects a ~42x FY2 P/E multiple." Azer credits SAM for the innovation pipeline across brands, but reminds that landing incremental shelf space is challenging. Shares of Boston Beer are up 7.97% premarket after sailing past consensus marks with its Q1 report.
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Boston Beer rallies after earnings topper while Cowen remains cautious