TPX.B:CC - Goldman Sachs downgrades Boston Beer upgrades Molson Coors

In a new assessment of the beverage industry, Goldman Sachs is ordering more Molson Coors (NYSE:TAP) while lowering expectations for Boston Beer Company (NYSE:SAM). The bank’s analyst Bonnie Herzog explained that feedback from channel checks indicated even slower seltzer sales at Boston Beer (SAM) than previously expected and elevated pressure on gross margins across the business. While Twisted Tea sales were cited as a bright spot, Herzog advised that it is not strong enough to make up for the flagging seltzer sales.  Amid this dynamic, she expects management will need to lower its full year guidance “across the board including shipment/depletion growth, gross margin and EPS guidance.” Herzog cut her price target on shares by 16% to $318 and reassessed the stock as a “Sell” from her prior “Neutral” rating. Shares of the Sam Adams brewer fell 2.5% in Tuesday’s premarket trading. Conversely, Herzog highlighted Molson Coors (TAP) as a

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Goldman Sachs downgrades Boston Beer, upgrades Molson Coors