Evaluating Boston Beer Co: Insights From 7 Financial Analysts

Boston Beer Co SAM has been analyzed by 7 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $344.43, with a high estimate of $422.00 and a low estimate of $275.00. A decline of 0.51% from the prior average price target is evident in the current average.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Boston Beer Co is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Boston Beer Co. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Boston Beer Co compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Boston Beer Co's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Boston Beer Co's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Boston Beer Co analyst ratings.

Delving into Boston Beer Co's Background

Boston Beer is a top player in high-end malt beverages and adjacent categories in the U.S., with strong positions in craft beer, flavored malt beverage, hard cider, and hard seltzer. The bulk of volume and revenue is concentrated in four brands, including Samuel Adams, Angry Orchard, Twisted Tea, and Truly Hard Seltzer. Beverages are produced using a hybrid model leveraging both in-house capacities and third-party breweries through contract arrangements. While the firm is required to use distributors to reach end markets including retailers and on-premises operators, it also employs 500 internal sales representatives to educate the market about its products. The firm generates over 95% of sales in the U.S.

Financial Milestones: Boston Beer Co's Journey

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Boston Beer Co's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.86% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Boston Beer Co's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 7.53%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Boston Beer Co's ROE excels beyond industry benchmarks, reaching 4.1%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.01%, the company showcases effective utilization of assets.

Debt Management: Boston Beer Co's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.04.

Analyst Ratings: What Are They?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.