Boston Beer upgraded to buy from neutral at UBS

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Sam Adams parent Boston Beer upgraded as Truly hard seltzer headwind fizzles

Boston Beer Co. , whose portfolio of brands includes Sam Adams beer, was upgraded to neutral from sell at UBS based on fading headwinds to the popular Truly hard seltzer brand. UBS bumped up its price target to $390 from $305. “Truly’s stellar growth in fiscal 2019 failed to translate into meaningful earnings growth year-to-date as the company’s heavy reliance on co-packers weighed on margins,” analyst Sean King wrote. “We now believe that this headwind will ease into fiscal 2020 with greater internal capacity coming. The extent of vertical integration and outlook for Truly growth will be key determinants of earnings growth for Boston Beer in fiscal 2020.” Moreover, UBS has heard chatter about an ongoing shortage in White Claw, a big Truly competitor, which King thinks will drive share stabilization at Boston Beer. Shares of Boston Beer have rallied 56% for the year to date while the S&P 500 index is up nearly 17% for the period. Read: White Claw, Truly and other hard seltzers could take a hit from Sober September

1 BUSINESS

Business News - Opportunities - Reviews

 

 

Leave a Reply