Truly Growth Could Give SAM Stock a Boost, Says Analyst

The analyst also lifted its price target by $60 to $410

Deputy Editor
Sep 26, 2019 at 9:38 AM
facebook twitter linkedin


Adult beverage concern Boston Beer Company Inc (NYSE:SAM) could be looking at a second day in the black, following a bull note from BMO. Specifically, the analyst upgraded the security to "outperform" from "market perform," and lifted its price target to $410 from $350 -- a 17.5% premium to last night's close. BMO said SAM's 2020 earnings per share could surge 20% above estimates, citing strong consumer demand for the company's Truly product

Most of the brokerage bunch, however, doesn't share this sentiment. Prior to today, SAM held only two "strong buy" ratings, compared to six "hold" or worse ratings. Plus, the consensus 12-month target price of $369.58 is at a slim 5.9% premium to last night's close. 

Looking more broadly, SAM has seen a sharp sell-off since it peaked at $444.64 in late August. In fact, prior to today, the stock was on pace for its biggest one-month loss in at least 10 years. The 160-day moving average appears to have swooped in as support, though, and the equity still boasts a 45% year-to-date gain. 

While call buying has been popular at the major exchanges in recent weeks, short-term options traders are unusually put-skewed right now. For instance, the Schaeffer's put/call open interest ratio (SOIR) is 1.58, and ranks in the 68th annual percentile. This shows put open interest among options expiring within three months heavily outweighs call open interest.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners