Boston Beer’s Retail Sentiment Stays Bearish Despite Citi’s ‘Buy’ Call On Prospects For Vodka-Laced Sun Cruiser Iced Tea

The firm cited among other factors significant advertising spend leading up to the national launch of its hard iced tea brand Sun Cruiser.

Shares of Boston Beer Co (SAM) rose 3.81% on Thursday after the maker of Samuel Adams received an analyst upgrade from Citi. The upgrade cited prospects for volume growth and the much-anticipated national launch of the hard iced tea brand Sun Cruiser later this year.

Citi analyst Filippo Falorni upgraded Boston Beer to ‘Buy’ from ‘Neutral’ with a price target of $280, up from $265, The Fly reported.

The move comes despite a string of price cuts that Boston Beer – which also makes Angry Orchard Hard Cider and Twisted Tea – received recently following its fourth-quarter earnings.

Falorni reportedly cited growth prospects for volume and sales for the ratings upgrade in addition to “slightly improving trends” at Truly Spiked & Sparkling, as well as growth in Twisted Tea.

For Sun Cruiser, the analyst noted the significant advertising spend behind its upcoming national launch in the first half of 2025.

Last week, Morgan Stanley lowered the firm's price target on Boston Beer to $270 from $290 with an Equal Weight rating on the shares following “better-than-expected Q4 and FY25-to-date depletions,” reported The Fly.

The firm saw "a still challenged" volume outlook and uncertain returns on the company's planned step-up in brand investment, along with a "potentially more intriguing risk/return post recent stock underperformance," said the report.

Citi also reportedly moved Keurig Dr Pepper as its top pick in the beverages, household and personal care group.

Citi separately downgraded fellow beer maker Constellation Brands from ‘Buy’ to ‘Neutral’ with a price target of $200, down from $260, The Fly reported.  According to the firm, the recent slowdown in beer sales "could linger" with Hispanic consumer weakness, a soft U.S. beer category.

Sentiment on Stocktwits ended in the ‘bearish’ zone on Thursday for Boston Beer, with message volume in the ‘normal’ zone compared to ‘low.’

Boston Beer stock is down 24% year-to-date.

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