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UPDATE: Goldman Sachs Raises PT on Boston Beer Co. on Raised Estimates, Stretched Valuation

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In a report published Wednesday, Goldman Sachs analyst Judy E. Hong reiterated a Neutral rating on Boston Beer Co. (NYSE: SAM), and raised the price target from $180.00 to $233.00.

In the report, Goldman Sachs noted, “We raise our EPS estimates for SAM by 2.6%/7.6%/13.2% in 2013/2014/2015 and increase our 12-month price target to $233 from $180. Recent data have shown continued strong growth for Angry Orchard and sustained improvement for its beer portfolio. We now see improved Samuel Adams growth continuing into 2014, an even stronger growth outlook for Angry Orchard and better cost leverage in the out-years. That said, we retain our Neutral rating on SAM and wait for better entry point, as its NTM P/E of 39X even on our revised estimates suggests that valuation is already stretched versus other consumer/retail growth peers (average of 26-27X NTM P/E).”

Boston Beer Co. closed on Tuesday at $238.73.

Latest Ratings for SAM

DateFirmActionFromTo
Sep 2014Cowen & CompanyInitiates Coverage onOutperform
Jun 2014CLSAUpgradesUnderperformOutperform
Nov 2013RBC CapitalInitiates Coverage onSector Perform

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