Sometimes, that little shot of analyst commentary is all a stock needs to start climbing. That was just what happened for Boston Beer (NYSE:SAM) today, as new word from Deutsche Bank hit and sent shares up around 2.5% in Wednesday afternoon’s trading.
The word came from a coterie of Deutsche Bank analysts, attributed to no single source, that Boston Beer was looking increasingly good. The report specifically cited current share prices and the likelihood that the company’s current CEO has what’s needed to keep growth rates balanced, consistent, and, perhaps best of all, sustainable.
That hope was enough for Deutsche Bank to bump up its rating from a Sell to a Hold. It wasn’t all good news, however; Deutsche Bank’s analysts thought that the Twisted Tea brand was looking fairly soft and could potentially face more sales struggles. But overall, Deutsche Bank noted that the brand had plenty of solid properties that should carry it through.
Speaking of Solid Properties…
One of those new properties was only recently unveiled. It’s called “General Admission,” and it’s named that because, like the film rating of the same name, anyone can get in. It’s described as non-alcoholic—though it does contain beer, it has less than 0.5% alcohol by volume—and is specifically geared toward drinkers who want to moderate their alcohol intake. There are four different flavors, but it’s only available in a handful of stores right now. A successful run therein might see the option expand from there.
Is Boston Beer a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on SAM stock based on two Buys, five Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 7.94% loss in its share price over the past year, the average SAM price target of $317.36 per share implies 13.24% upside potential.
