On Thursday, Evercore ISI adjusted its outlook on Boston Beer Company (NYSE: NYSE:SAM), reducing its price target to $310 from the previous $340, while maintaining an In Line rating for the stock. The revision comes as the analyst firm anticipates the shares to experience limited movement in the coming months due to uncertainties in revenue and a diminished potential for gross margin (GM) percentage growth in 2024.
The firm's analysis suggests that for Boston Beer's stock to show improvement in the long term, it will be crucial for the company to achieve a significant expansion in GM percentage in 2025. Additionally, the company would need to demonstrate substantial progress toward reaching its medium-term goal of a 50% GM.
The lowered price target to $310 reflects a more cautious stance on the company's Twisted Tea brand. This adjustment in the price target is a response to the challenges and expectations set for Boston Beer in the near future.
The Evercore ISI report indicates that the current market conditions and company-specific factors are contributing to a more conservative valuation of Boston Beer shares. The firm's maintained In Line rating suggests that the stock is expected to perform generally in line with the market or other stocks within its sector.
Investors and market watchers will be keeping an eye on Boston Beer's performance, particularly in relation to its gross margin percentage and the success of its Twisted Tea brand, as these factors are considered critical to the company's financial health and stock valuation moving forward.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.