Analyst Shifts Sentiment on Boston Beer Stock

Jefferies upgraded SAM to “buy” from “hold,” but the stock has struggled in 2024

The shares of Boston Beer Company Inc (NYSE:SAM) are 1.6% higher at $288.23 in premarket trading, after Jefferies upgraded the beer brewer to “buy” from “hold” and hiked its price target by $25 to $360 — a 26.8% premium to last night’s close.

In its bull note, the analyst said Boston Beer’s Truly business has found its floor and its Twisted Tea unit is strong. In addition, innovative products like Hard Mountain Dew and alcoholic tea Sun Cruiser are offsetting declines in seltzer, beer, and cider. 

On the charts, SAM has trended lower since a 15.8% post-earnings bear gap on Feb. 28, culminating in a May 7 12-month low of $264.63. Year to date, Boston Beer stock is down 17.9%. 

Options traders remain firmly bullish. The equity’s 10-day call/put volume ratio of 17.74 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), sits higher than 98% of readings from the past year. This means calls are being picked up at a faster-than-usual pace. 

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