Demystifying Boston Beer Co: Insights From 5 Analyst Reviews

In the preceding three months, 5 analysts have released ratings for Boston Beer Co SAM, presenting a wide array of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $352.6, a high estimate of $390.00, and a low estimate of $285.00. Witnessing a positive shift, the current average has risen by 6.2% from the previous average price target of $332.00.

Investigating Analyst Ratings: An Elaborate Study

The standing of Boston Beer Co among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines 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: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Boston Beer Co compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Boston Beer Co's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Boston Beer Co's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Boston Beer Co analyst ratings.

Discovering Boston Beer Co: A Closer Look

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: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Boston Beer Co showcased positive performance, achieving a revenue growth rate of 0.86% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: Boston Beer Co's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 7.53%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Boston Beer Co's ROE stands out, surpassing industry averages. With an impressive ROE of 4.1%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Boston Beer Co's ROA excels beyond industry benchmarks, reaching 3.01%. This signifies efficient management of assets and strong financial health.

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.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per 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.