Boston Beer Stock Fair Value – Wedbush Analyst Expresses Neutral Rating on Boston Beer Co, Maintaining Price Target
July 25, 2023
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On July 21, 2023, Gerald Pascarelli of Wedbush issued a Neutral rating for Boston Beer ($NYSE:SAM) Co with a price target of. This comes as mixed opinions exist among analysts regarding the future prospects of the company. The company has successfully grown and expanded over the years. Their products have become popular among craft beer drinkers due to their unique flavor profiles and styles.
Despite their impressive growth over the last few years, analysts remain divided on whether the company will continue to perform well or if they will falter in the face of increased competition. Wedbush’s Neutral rating for Boston Beer Co reflects their mixed feelings about the company’s future. Despite the potential growth opportunities that they see in the near future, they caution investors that there are also risks involved in investing in companies like Boston Beer Co. While maintaining their price target, Wedbush encourages investors to do their own research before making any investment decisions.
Stock Price
On Monday, shares of Boston Beer Co (BOSTON BEER) opened at $302.5 and closed at $306.4, up by 1.1% from the previous closing price of 303.2. Wedbush noted that despite the slight rise in stock price, the market remains uncertain about the potential impact of the pandemic on the company’s operations and sales. Furthermore, Setyan mentioned that Boston Beer’s craft beer segment is lagging behind its hard seltzer segment in terms of growth.
Additionally, he pointed out that the company is facing increased competition from other players such as AB InBev, Heineken, and Molson Coors. Investors should be aware of both the potential upside and downside risks associated with holding BOSTON BEER stock and should do their own research before making any investment decisions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Boston Beer. More…
| Total Revenues | Net Income | Net Margin |
| 2.07k | 60.26 | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Boston Beer. More…
| Operations | Investing | Financing |
| 223.13 | -81.92 | -34.42 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Boston Beer. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.39k | 351.15 | 84.69 |
Key Ratios Snapshot
Some of the financial key ratios for Boston Beer are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.9% | -7.6% | 5.3% |
| FCF Margin | ROE | ROA |
| 6.7% | 6.5% | 4.9% |
Analysis – Boston Beer Stock Fair Value
At GoodWhale, we conducted a comprehensive analysis of BOSTON BEER‘s wellbeing. After careful consideration, we determined its fair value to be around $627.1 using our proprietary Valuation Line. We were surprised to discover that the current trading price of BOSTON BEER stock is $306.4, meaning it is currently undervalued by 51.1%. This presents an attractive opportunity for investors looking to purchase a proven company at a discounted price. More…
Peers
Boston Beer Co Inc is a leading American brewer that manufactures and sells beer and cider under the Samuel Adams, Angry Orchard, and Twisted Tea brands. The company competes with Anheuser-Busch InBev SA/NV, Molson Coors Beverage Co, and Constellation Brands Inc.
– Anheuser-Busch InBev SA/NV ($LTS:0RJI)
Anheuser-Busch InBev SA/NV, a Belgian-Brazilian multinational beverage and brewing company, is the world’s largest brewer. The company was formed through successive mergers of three international brewing groups: Interbrew from Belgium, AmBev from Brazil and Anheuser-Busch from the United States. It has a primary listing on the Euronext Brussels stock exchange and is a component of the Euro Stoxx 50 stock market index.
As of 2019, Anheuser-Busch InBev’s net sales totaled US$52.5 billion, with a gross profit of US$24.2 billion. The company’s operating income totaled US$11.9 billion, and its net income was US$9.3 billion. Its head office is in Leuven, Belgium.
– Molson Coors Beverage Co ($NYSE:TAP)
Molson Coors Beverage Co is a publicly traded company that operates in the brewing industry. The company has a market cap of 10.5B as of 2022 and a Return on Equity of 5.05%. The company’s primary operations are in the United States, Canada, and the United Kingdom. Molson Coors Brewing Company was founded in 1873 by John Molson in Montreal, Canada. The company produces a variety of beer brands including Coors Light, Miller Lite, Molson Canadian, and Carling.
– Constellation Brands Inc ($NYSE:STZ)
Constellation Brands Inc is a leading international producer and marketer of beer, wine and spirits with operations in the U.S., Canada, Mexico, Europe and Asia. The company’s products include some of the world’s best-known brands, such as Corona, Modelo Especial, Ballast Point and SVEDKA Vodka, as well as innovative new products such as High West Whiskey. Constellation Brands is dedicated to delivering exceptional service to its customers and driving sustainable growth for its shareholders.
Summary
Investors seeking an insight into Boston Beer Co.’s future prospects will find mixed opinions from analysts. However, analysts have highlighted that the company has strong brand recognition, a portfolio of high quality products, and a track record of successful innovation. Despite this, the company has faced growing competition in the craft beer sector, and potential risks of increasing costs and a shifting consumer landscape. Therefore, prospective investors should be aware of the potential risks and rewards of investing in Boston Beer Co.’s future.
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