USA: Boston Beer upped to overweight

Shares in Boston Beer Co. rose as much as 7.6% on June 10 after an analyst upgraded the brewer, citing valuation and an attractive risk-versus-reward profile.

Boston Beer, maker of Samuel Adams brand beers, saw its stock rally 6.6%, or $1.41 to $22.92 recently. Shares traded as high as $23.14 earlier in the session.

Prudential Equity analyst Jeffrey Kanter, who upped the brewer to overweight from neutral, said the company's valuation is not as rich as it looks, thanks to the amount of cash Boston Beer has on its books. That cash affords management "shareholder friendly options," said Kanter in a note to clients.

Additionally, if the major brewers are successful in bringing drinkers back to the beer market, Boston Beer should benefit first, the analyst said.

"[The] risk/reward reminds us of 'heads we win, tails we tie,' which is a profile we typically like," said Kanter, who raised his price target to $26 from $24.

E-malt.com, la fuente de información global para los profesionales de la industria cervecera y de malteado. Los boletines quincenales de E-malt.com incluyen las últimas noticias de la industria, estadísticas en gráficos y tablas, precios mundiales de cebada y malta, y otra información relevante. Haga clic aquí para obtener acceso completo a E-malt.com. Si usted es un cliente de Castle Malting, puede obtener acceso gratuito al sitio web y publicaciones de E-malt.com. Contáctenos para obtener más información en marketing@castlemalting.com.