By Dhirendra Tripathi
Investing.com – Boston Beer stock (NYSE :) rose more than 7% on Monday as Cohen upgraded to market performance with a $ 500 target.
FCMs previously underperformed their stock price target at $ 400.
Stocks reached a high of $ 493.77 in an ongoing session, more than half from July 1.
According to Cowen, Nielsen’s trend reflects signs of stabilization and low expectations are reflected in stock prices.
After initially adjusting the annual guidance in July, brewers lowered the guidance again in September as sales of hardselzers deteriorated.
In a note to the Securities and Exchange Commission about three months ago, Boston Beer said the market for hardselzer products continues to slow. According to the company, significant depreciation of Selzer-related inventory, shortfalls paid to third-party brewers, and other costs incurred for the rest of the fiscal year are expected.
Hardselzer sales were strong in the pandemic, and the company secured inventories to meet demand, which is expected to grow only. A rude shock awaited the company as hard-selling on-premises demand was much slower than home consumption as the economy resumed. As a result, the company was forced to record huge inventories in the second and third quarters.
The company closed its third quarter in the red compared to profits a year ago.
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Boston beer soars as Cohen upgrades prices, rated by Investing.com
Source link Boston beer soars as Cohen upgrades prices, rated by Investing.com