Citi upgrades Boston Beer stock to "buy" rating

Citi has raised its rating on Boston Beer Company shares, predicting a potential increase of over 25%. Analyst Filippo Falorni upgraded the stock from "neutral" to "buy" and increased the price target by $15, setting it at $280. This new target indicates a 27.8% rise from the previous close. Falorni's optimistic outlook makes him stand out among Wall Street analysts, most of whom currently have hold ratings on the stock. His upgrade comes ahead of the launch of Boston Beer's new Sun Cruiser brand, an iced tea and vodka mix, expected in the first half of this year. The launch will be supported by an advertising budget of $30 million to $50 million. Falorni observes that Boston Beer has experienced fluctuating sales trends due to past product launches. He noted that after facing three years of declining sales from 2022 to 2024, there could be a return to growth in 2025. Factors contributing to this potential growth include improving sales for the Truly brand, stabilizing Twisted Tea sales, and the addition of Sun Cruiser. Despite some concerns about a slowdown in Twisted Tea sales, Falorni remains hopeful. He cited recent poor weather and easier comparisons in sales as reasons for optimism. Twisted Tea represents about 57% of Boston Beer’s sales. As for the stock's valuation, Falorni believes it is currently below historical levels. He expects that gross margins could improve to around the high 40% range with the company's new initiatives. Shares of Boston Beer rose by 0.6% in early trading on Thursday, though they have dropped nearly 27% since the start of 2025.