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Research Alert: CFRA Lowers Opinion On Boston Beer Company To Hold From Buy
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Research Alert: CFRA Lowers Opinion On Boston Beer Company To Hold From Buy
Oct 24, 2025 9:41 AM

12:15 PM EDT, 10/24/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target by $15 to $260, based on a 2026 P/E of 25.4x, a justified discount to SAM's five-year average forward P/E of 39.8x on weaker growth expectations. We lower our EPS estimates to $9.35 from $9.50 for '25 and to $10.25 from $11.00 for '26, and introduce '27 at $11.20. We lower our rating to Hold from Buy on concerns related to a prolonged sales slump for its brands. While we think SAM has done an excellent job managing the business in light of the drop in demand for its brands, as evidenced by the company's 450 bps of gross margin expansion despite a 13.7% drop in shipments in Q3, we are growing concerned by the lack of products or brands to pull it out of its sales slump looking out over the next several quarters. Moreover, we find consumer and demographic trends broadly concerning for the group, as per capita alcohol consumption continues to decline. With SAM shares trading 6% higher following the beat, we move to the sidelines, viewing the steep discounts at which the stock currently trades as justified.

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