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Boston Beer's Q2 Volumes Expected to be 'Soft', RBC Says

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Boston Beer (SAM) is expected to report "soft" volumes and "resilient" gross margins in Q2, RBC Capital Markets said in a note Tuesday.

The company is scheduled to report its Q2 financial results on Thursday.

Analysts said there are risks to the company's topline outlook for the year but feel better about its margin and bottomline expectations due to cost savings.

RBC said that Boston Beer shares have underperformed over the last 3 months due to softness in the beer category

Analysts said the sequential slowdown in the category has been primarily driven by rising gas prices pressuring consumer spending and worse weather.

RBC has a sector perform rating on the stock and a $234 price target.

Price: $177.10, Change: $-3.49, Percent Change: -1.93%

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