RBC Capital has reiterated a Sector Perform rating on Boston Beer Company and maintained a $245.00 price target. The firm’s tone is cautious even after the stock’s recent outperformance, which RBC attributes to sector rotation and a modest improvement in beverage alcohol performance earlier this year.
Shares of Boston Beer have returned 18.6% year-to-date and gained 6% over the last six months. At the time of RBC’s note, the stock was trading at $232.71 and carried a price-to-earnings ratio of 28.2. Despite the rally, RBC describes the company’s fundamentals as challenging and continues to flag weak volume trends as an ongoing issue.
Looking toward 2026, RBC recognizes constructive elements within Boston Beer’s operating profile. The firm highlights the effectiveness of gross margin initiatives and the mix benefits stemming from the Sun Cruiser product. According to InvestingPro data cited by RBC, Boston Beer posts a gross profit margin of 47.7%—a metric the firm points to when assessing the company’s earnings quality and margin resilience.
RBC also notes aggressive share repurchases by management as a supportive capital-allocation action. Those buybacks are presented as one of several analytical considerations available through InvestingPro tips and research tools referenced in the firm’s commentary.
Despite margin improvements and buybacks, RBC expects volume to remain a headwind. To stimulate demand, the firm anticipates Boston Beer may raise advertising and promotional spending. While RBC views such marketing investment as the right strategic move for the company’s brands and portfolio, it cautions that increased promotional outlays would likely temper earnings per share in the near term.
Overall, RBC’s forecast for Boston Beer sits below consensus estimates. The firm’s assessment balances clear margin and mix gains against persistent volume weakness and the probability of increased marketing expenditure that could compress reported EPS.
Analyst takeaway: RBC remains neutral on the stock, acknowledging margin strength and buybacks but emphasizing that weak volumes and potential incremental marketing spending keep the near-term earnings outlook constrained.