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Analyst Cracks Open Beer Stock with Bull Note

The equity is up over 125% year-over-year

Digital Content Manager
Aug 21, 2020 at 9:45 AM
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The shares of Boston Beer Company Inc (NYSE: SAM) are up 0.9% at $852.60 this morning, after the parent company of Samuel Adams, Angry Orchard Hard Cider and Dogfish Head Craft Brewery earned a price-target hike from Cowen and Company to $1,000 from $825.

The equity has been climbing up the charts since late March, with support from the 20-day moving average. Back in late July, a bull gap paved the way for the stock's latest all-time-high $871.64 on August 5, which is more than double this year's pre-pandemic high, sending its year-to-date lead all the way up to 125.6%.

Analysts were optimistic toward SAM coming into today, with seven of the 10 in coverage sporting a "buy" or better rating, and only three carrying a tepid "hold" or worse. Meanwhile, the 12-month consensus price target of $723.69 is a whopping 15.1% discount to current levels, meaning more price target hikes could be on Boston Beer stock's horizon. 

A short squeeze could fuel additional tailwinds for the security. Short interest is down roughly 13% in the most recent reporting period, and the 1.01 million shares sold short make up 11.3% of the stock's available float, or more than a week's worth of pent-up buying power.

 

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