RBC Capital said Wednesday it has raised Beer Company (SAM) price target to $175 from $162, while reiterating its sector perform rating.
According to the broker the company’s Q1 results well exceeded RBC/consensus expectations on the top and bottom line (excluding help from tax benefits). “Optically, Boston Beer looks to be on the mend after a few tough years. However, much of the improvement is innovation driven and repeat rates will determine if this rate of growth is sustainable,” said RBC.
The broker said it is raising its FY’18 EPS to $6.76 from $6.33 previously (reiterated guidance range $6.33 to $7.30), mainly attributable to the beat this quarter.