Boston Beer's Structural Challenges Remain: Morgan Stanley Analyst Anticipates Slower Growth
Portfolio Pulse from Shivani Kumaresan
Morgan Stanley analyst Eric Serotta reiterated an Underweight rating on Boston Beer Company Inc (NYSE:SAM) and raised the price target from $270 to $285. Despite beating Q3 FY23 revenue and EPS estimates, the analyst expects SAM's volumes to remain under structural pressure with continued declines in the malt-based hard seltzer category. The analyst also sees limited visibility for SAM to return to its targeted 49% - 50% gross margins over the next several years.
October 30, 2023 | 6:14 pm
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Despite beating Q3 FY23 revenue and EPS estimates, Boston Beer Company is expected to face continued pressure on volumes and limited visibility on gross margin targets, according to a Morgan Stanley analyst.
The Morgan Stanley analyst's Underweight rating and concerns about structural pressure on volumes and gross margins suggest a negative outlook for Boston Beer Company. Despite the raised price target, the overall sentiment appears bearish, which could negatively impact the stock price in the short term.
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