Market Overview

Jefferies Downgrades Boston Beer On Guidance Risk, Likes Spectrum Brands And Newell Rubbermaid More

Jefferies Downgrades Boston Beer On Guidance Risk, Likes Spectrum Brands And Newell Rubbermaid More

On Thursday, Jefferies issued an industry note regarding consumer products highlighting Boston Beer Co Inc (NYSE: SAM), Spectrum Brands Holdings, Inc. (NYSE: SPB) and Newell Rubbermaid Inc. (NYSE: NWL).

In their report, Jefferies analyst Kevin Grundy and associates Peter Schanzer and Herb Eppich upgraded Spectrum Brands and downgraded Boston Beer, while calling Newell Rubbermaid one of their top long ideas.

Boston Beer Co: Hold, $210 PT

"After three downward revisions (in four qtrs.), we see risk to SAM's FY16 guide and longer-term risk to the co.'s outlook owing to (i) continued pressure in beer; and (ii) shortening innovation cycles in lateral alcohol categories. We are trimming our FY16-17 estimates," Jefferies stated regarding Boston Beer.

Related Link: Anheuser-Busch InBev Reports Breckenridge Brewer In CO As 7th Craft Brewery Acquisition

Jefferies mentioned that the alcohol industry has become more competitive and more subject to short innovation cycles. This has made forecasting increasingly difficult and has put pressure on margins.

Spectrum Brands: Buy, $134 PT

Jefferies commented that for Spectrum Brands, "organic growth is accelerating and closing the gap vs. staples peers behind increased investment spending, expanded distribution, and enhanced execution."

The note continued, "We expect SPB to deliver closer to 3–4 percent org sales growth going forward."

The analysts also noted that due to acquisitions and cost cutting, EBITDA margins have increased from 14.5 percent to 17.1 percent.

Newell Rubbermaid: Buy, $54 PT

"While integration risk cannot be easily dismissed, potential synergy upside from merger with Jarden Corp (NYSE: JAH) could be substantial," the analysts commented on Newell Rubbermaid.

Jefferies also highlighted the capabilities of the management, which could drive the company to higher growth opportunities.

At The Time Of This Publication...

  • Boston Beer was trading at $181.50, down 5.54 percent.
  • Spectrum Brands was trading at $100.84, up 3.22 percent.
  • Newell Rubbermaid was trading at 40.14, down 0.52 percent.
  • Jarden Corp was trading at $53.39, down 0.38 percent.

Image Credit: By Boston Public Library (BPL) [CC BY 2.0], via Wikimedia Commons

Latest Ratings for SPB

Feb 2021RBC CapitalMaintainsSector Perform
Feb 2021Deutsche BankMaintainsBuy
Feb 2021Monness, Crespi, HardtMaintainsBuy

View More Analyst Ratings for SPB
View the Latest Analyst Ratings


Related Articles (SAM + SPB)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas Upgrades Downgrades Price Target Reiteration Analyst Ratings Trading Ideas

Latest Ratings

PRUMorgan StanleyMaintains90.0
CHXCredit SuisseMaintains21.5
PMMorgan StanleyMaintains103.0
UPLDCredit SuisseMaintains58.0
PFGMorgan StanleyMaintains60.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at