Boston Beer stock rating reiterated at Market Perform by Bernstein

Investing.com - Bernstein SocGen Group has reiterated its Market Perform rating on Boston Beer Company (NYSE:SAM) with a price target of $230.00, according to a recent analyst note. According to InvestingPro analysis, the company appears undervalued at current levels, with a "GOOD" overall financial health score.

The firm’s analysis highlights significant volatility in Boston Beer’s performance, noting that while the share price has fallen 30% year-to-date, the company has shown mixed operational results. Last twelve months (LTM) shipments declined 2%, but net revenue increased 2.5% during the same period. The company maintains a strong balance sheet, with more cash than debt and a healthy current ratio of 1.76x.

Bernstein points to some positive financial metrics, including approximately 290 basis points of LTM gross margin expansion and a 21% increase in adjusted operating income. The firm also acknowledges the recent leadership change, suggesting that Jim Koch’s return to the helm should be well received by investors.

The note emphasizes Koch’s historical approach to innovation as the company’s "secret sauce," which led to successful product launches including Sam Adams craft beer, Twisted Tea, Angry Orchard cider, and Truly hard seltzer. However, Bernstein identifies topline growth as the primary challenge facing the company.

Recent performance data shows Q2 depletions were down 5% year-over-year, with weakness in the beer/FMB/cider portfolio, particularly Twisted Tea, only partially offset by growth in Sun Cruiser. While nine analysts have recently revised their earnings estimates downward, InvestingPro data reveals additional insights about the company’s performance and prospects. Subscribers can access over 30 key metrics and exclusive analysis in the comprehensive Pro Research Report.

In other recent news, Boston Beer Company reported its second-quarter 2025 earnings, exceeding expectations with an earnings per share (EPS) of $5.45 compared to the forecasted $3.92. However, the company experienced a slight revenue miss, which contributed to a mixed market reaction. Founder Jim Koch is set to return as CEO on August 15, 2025, replacing Michael Spillane, who is stepping down for personal reasons. Koch previously served as the chief executive from the company’s inception in 1984 until January 2001 and has remained chairman since then.

Bernstein SocGen Group has reiterated its Market Perform rating for Boston Beer, maintaining a price target of $230. The firm highlighted three positive developments in Boston Beer’s recent earnings report, including the performance of Sun Cruiser, improvements in gross margins, and assessments of tariff impacts. Despite these positive aspects, Boston Beer remains the worst performer year-to-date in Bernstein SocGen’s beverage coverage. These developments reflect ongoing changes and challenges within the company.

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