A Closer Look at 8 Analyst Recommendations For Boston Beer Co

In the last three months, 8 analysts have published ratings on Boston Beer Co SAM, offering a diverse range 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.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $345.12, with a high estimate of $422.00 and a low estimate of $275.00. A 0.31% drop is evident in the current average compared to the previous average price target of $346.20.

Breaking Down Analyst Ratings: A Detailed Examination

In examining recent analyst actions, we gain insights into how financial experts perceive Boston Beer Co. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Boston Beer Co. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Boston Beer Co compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Boston Beer Co's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Boston Beer Co's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Boston Beer Co analyst ratings.

All You Need to Know About Boston Beer Co

Boston Beer is a top player in high-end malt beverages and adjacent categories in the US, with strong positions in craft beer, flavored malt beverages, hard cider, and hard seltzer. The bulk of volume and revenue is concentrated in four brands: Samuel Adams, Angry Orchard, Twisted Tea, and Truly. 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 US.

Boston Beer Co's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Challenges: Boston Beer Co's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -12.02%. This indicates a decrease in 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -4.6%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Boston Beer Co's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -1.65%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Boston Beer Co's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.23%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Boston Beer Co's debt-to-equity ratio is below the industry average at 0.04, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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