SAM - Boston Beer slips after Citi calls it priced to perfection

Citi drops its rating on Boston Beer (SAM) to Neutral from Buy on its view that the stock is now fully valued. Analyst Wendy Nicholson: "SAM’s stock was up 163% in 2020, making it the best performing consumer staples stock we cover. The stock is up another 29% YTD in 2021 (vs. +11% for SPX). As such, the stock is now trading at ~38x our 2022 EPS estimate, or an 87% premium to the market. At this point, it feels to us as if the stock is priced for perfection. However, the outlook for SAM is no longer perfectly clear to us." Citi now expect 45% revenue growth in FY21 for SAM, which its says will mark the peak of its top line growth rate given both the expected slowdown in the hard seltzer category this year as it laps tough comparables and increasing degree of competition in canned alcoholic

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Boston Beer slips after Citi calls it priced to perfection