USA: Shares of Boston Beer Co. retreat after Deutsche Bank analyst downgrades stock from "buy" to "hold"

Shares of Boston Beer Co. Inc., brewer of Samuel Adams brand beer, fell sharply August 29 after a Deutsche Bank analyst downgraded the stock, saying it has reached a fair price after a sustained run-up, media released August 29.

Shares of Boston Beer dropped US$2.08, or 6.3 percent, to US$30.78 in afternoon trading on the New York Stock Exchange. The stock has gained 31.4 percent so far this year, and trades in a 52-week range of US $22.61 to US $33.49.

Ted Tabasso, an analyst at Deutsche Bank Securities Inc., downgraded Boston Beer to "Hold" from "Buy" with a target price of US $33. Tabasso said Boston Beer's growth prospects remain robust, its retail demand continues to trend higher and the company recently raised its 2006 earnings expectations.

However, he notes that the market has recognized those fundamentals, which are now priced into the stock.

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