Check out today’s top analyst calls from around Wall Street, compiled by The Fly.
BUY BOSTON BEER: Credit Suisse analyst Kaumil Gajrawala upgraded Boston Beer (SAM) to Outperform from Neutral with a price target of $1,490, up from $1,304, which represents 61% upside potential. The analyst believes the company is best positioned to navigate the “new rules” of the hard seltzer category. There is too much focus on how large seltzer can be as a percentage of U.S. beer, which can be a wrong metric as 50% of share is gained from wine and spirits, he argued. Gajrawala thinks seltzer could reach 10% of total beverage alcohol by 2025 verses 3.5% today, approaching the size of wine. The category is slowing but Boston Beer’s Truly brand momentum is intact, the analyst contended.
BANKS COVERAGE ASSUMPTION: Keefe Bruyette analyst David Konrad has assumed coverage of several names in the bank space. Despite “recent volatility and uncertainty” regarding the macro reflation trade, the analyst remains constructive on large-cap banks due to expectations for the Federal Reserve to raise short-term rates. However, the current revenue environment may become more challenging for select banks who are benefiting from outsized growth in their bond portfolios, resulting in more of a stock pickers’ market for the second phase of the bank rally, Konrad contended.
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