Text size
Boston Beer, shaper of Samuel Adams beer, got a banal downgrade from Cowen analysts.
Justin Sullivan/Getty Images)Boston Beer has much atrocious times up of it. At least, that’s the instrumentality of analysts astatine Cowen who downgraded the banal to Underperform from Market Perform and slashed the terms people by much than fractional to $400, down from $825.
Last period Boston Beer (ticker: SAM) — shaper of Samuel Adams and Truly Hard Seltzer — shocked Wall Street erstwhile it said connected an net telephone that it overestimated the request for its hard seltzer, starring galore to recognize that the buzz for the portion class was dying down. Shares tumbled much than 30% over the past period connected that quality alone.
But the Cowen squad sees adjacent much downside up for Boston Beer, noting that the broader hard seltzer manufacture saw a 0.4% driblet successful gross successful the 4 weeks ending Aug. 14.
“While SAM is gaining much stock than we’d expected, the class is slowing much dramatically than we’d modeled. We don’t spot an on-premise betterment arsenic a capable offset,” Vivien Azer, expert astatine Cowen, wrote successful a enactment Wednesday. She notes that brew and ciders person posted treble digit declines.
Azer sees much than 30% downside to statement 2022 net estimates, with her squad projecting afloat twelvemonth net of $18.61 per stock portion The Street projects $27.35. Azer’s caller $400 terms people connected shares implies a 21.5 times multiple connected the stock, which is inactive greater than the 10-year debased of 18 times and the 20 times mean during the company’s “doldrums” successful 2015 and 2016.
Even arsenic hard seltzer prospects are dwindling, Boston Beer is inactive trying to innovate. Earlier this period it announced a concern with PepsiCo (PEP) to make Hard Mtn Dew, a malt beverage with 5% intoxicant by volume.
Boston Beer shares were down much than 6% successful greeting trading portion the S&P 500 was flat.
Write to Carleton English astatine carleton.english@dowjones.com
English (US) ·