2024-07-07 06:34:48 ET
Summary
- Boston Beer continues to struggle with stagnant growth as the weak seltzer market and other brands' weakness negate continued Twisted Tea momentum.
- Margins have risen well despite stagnant growth as gross margins have recovered partly from the 2021 low.
- Speculation around potential M&A transactions has heated up, potentially providing investors a lifeline. I still believe that a buyout isn't a very likely base scenario.
- Unless the company merges or is bought out, I believe that the stock is still overvalued by a fair margin.
The Boston Beer Company, Inc. ( SAM ) continues to work towards a recovery into better growth as seltzer sales have broken the prior very high growth, but no signs of a recovery are yet seen. Speculation around potential M&A transactions has also heated up, recently sending the stock up well....
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Boston Beer: M&A Lifeline Is Needed For Good Returns