UPDATE: Williams Capital Group Reiterates Outperform/Buy Rating, Raises PT on Boston Beer Company
In a report published Friday, Williams Capital Group reiterated its Outperform/Buy rating on Boston Beer Company (NYSE: SAM), and raised its price target from $117.00 to $130.00.
Williams Capital noted, “The Boston Beer Company recently reported better than expected 3Q12 diluted earnings per share of $1.54 vs. $1.19 in the prior year period, which was $0.31 above our estimate. Revenues increased 23.5% to $166.4 million, above our estimate of $144.5 million due to much higher than expected shipment growth of 17%. We are introducing our 2013 diluted earnings per share estimate of $4.63, which assumes revenue growth of 7.5% and operating margin contraction of approximately 10 basis points due to expectations of higher marketing spending, investments and commodity costs. We are increasing our 2012 diluted earnings per share estimate to $4.34, up from our prior estimate of $4.17 to primarily reflect the better than expected 3Q 2012 results, offset by 2Q 2012 performance and expectations of higher marketing expenses in 4Q 2012.”
Boston Beer Company closed on Thursday at $111.60.
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