Piper Sandler has lowered its growth targets for Boston Beer after the recent launch of its Hard Mountain Dew beer disappointed. Analyst Michael Lavery downgraded the stock to neutral from overweight. He also lowered his price target to $275 from $370, which would mean the stock would rise just 9.9% from Wednesday’s closing price. Lavery said the launch of the recently launched Hard Mountain Dew has been slower than initially expected. Although Boston Beer management expressed confidence that the beverage could be “the most successful of all crossover brands in non-alcoholic analogues over time,” analysts are no longer predicting it to be an upside catalyst for the year. “We had expected Hard Mtn Dew to deliver incremental growth following its nationwide launch and continued growth across SAM’s distribution network, but success may take more time than we anticipated,” Lavery wrote in a client note. In addition, , Twisted Tea sales, which account for about half of the company’s revenue, also fell by half from the previous quarter. “We continue to expect margin improvement to drive earnings per share growth, but at a lower price-to-earnings multiple,” Lavery added. Shares fell more than 1% in pre-market trading on Thursday following the downgrade. Thursday’s SAM 1D mountain Boston Beer stock rating change puts Lavery in line with most analysts covering the stock. LSEG data shows that 13 of 25 people who follow Boston Beer rate the stock as a hold or underperform. Only two have buy ratings. Boston Beer had a loss-making year, falling 13.2% in 2024.
ABOUT US
Our news website delivers comprehensive coverage on US news, economy, politics, and world events, ensuring you stay informed on the latest developments. We provide timely and accurate news to keep you updated on the most important stories. Stay connected with us for in-depth analysis and breaking news from around the globe.
Contact us: contact@realtimeheadlines.com
© Real Times Headlines - 2024 | All Rights Reserved