Morgan Stanley analyst Eric Serotta has maintained their neutral stance on SAM stock, giving a Hold rating on July 22.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Eric Serotta has given his Hold rating due to a combination of factors impacting Boston Beer’s performance. The company reported a significant earnings per share (EPS) beat for the second quarter, and while there was an improvement in gross margins, the overall topline performance showed weaknesses. Specifically, depletions declined by 5% year-over-year, which was below consensus expectations, although it aligned with broader market anticipations.
Despite the positive gross margin developments, Serotta remains cautious due to ongoing challenges in the alcohol market, including demographic shifts, health and wellness trends, and competition from cannabis. Additionally, the Twisted Tea brand, which constitutes a significant portion of Boston Beer’s volume, faces pressure as consumer preferences shift towards spirits-based ready-to-drink options. Consequently, while the EPS guidance for fiscal year 2025 has been raised, the price target has been lowered to reflect these industry headwinds.
In another report released on July 22, RBC Capital also maintained a Hold rating on the stock with a $267.00 price target.