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Boston Beer Climbs as Guggenheim Adds to 'Best Idea' List

Boston Beer could see its Truly hard seltzer, lemonade and iced tea franchise double, Guggenheim analysts said, adding the stock to their best-ideas list.
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Shares of Boston Beer  (SAM) - Get Report were higher on Monday after Guggenheim analysts added the brewer to their best-ideas list while reiterating a buy rating. 

The investment firm maintained its $1,800 price target, on the stock saying that Boston Beer has "significantly underperformed recently." 

That's nearly twice the Friday close on the stock at a bit above $970. The stock in late April neared $1,350. At last check Boston Beer shares were 2% higher at $989.

"We are raising Boston Beer to our “Best Idea” as we continue to see robust category growth predicated on seltzer category growth of 70% (including on-premise) with the Truly franchise doubling, including about 15 points of growth from the on-premise channel on top of retail sales," analyst Laurent Grandet said.

Truly includes alcoholic flavored seltzer, lemonade and iced tea.

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Guggenheim said Truly is on track to meet its 85% retail growth target by gaining another 2% in market share. 

Recently TheStreet's Jim Cramer discussed Citi analyst Wendy Nicholson's note on Boston Beer. She had cut her price target to $1,145 from $1,395 while affirming a neutral rating.

Nicholson said that she was concerned about a slowdown in Nielsen data.

Jim Cramer Says Sell Boston Beer Stock

She also said investors expected Boston Beer's launch of Truly Tea and Truly Punch to help offset tough comparisons "to a more significant degree than they apparently have."

"That's a tough call," Cramer said. "This stock trades on the Nielsens, and the note -- and a very good analyst -- indicate that the Nielsens have peaked. And there's charts in the note that tell you absolutely that it's peaked."