By Christiana Sciaudone
Investing.com -- Boston Beer (NYSE:SAM) rose almost 2% after Guggenheim called it a best idea.
Analyst Laurent Grandet reiterated a buy rating and keeping its $1,800 price target on AAM citing healthy growth, CNBC reported. The stock has "significantly underperformed recently," the analyst wrote in a note.
"Although optically softer, retail category growth remains healthy given the especially strong comparisons in March, April, and May last year that should begin to subside in June, in our view," Grandet said. "In addition, as part of the category deceleration is due to White Claw underperformance, our analysis shows that for every 2 points of market share gain, Truly can offset 10 points of category deceleration – which has been the case so far – in order to maintain the brand’s projected growth rate."
Shares are down more than 25% since April 20 amid the reopening of the U.S. post-pandemic.
Hard seltzers are losing some luster, but Guggenheim said Truly is still on track for dramatic growth with "bolder" flavors.