Roth Capital Reiterates Buy On Craft Brew Ahead Of Second Quarter Earnings


In a research report released yesterday, Roth Capital analyst Anton Brenner reiterated a Buy rating on Craft Brew Alliance Inc. (BREW) with a $19 price target ahead of the company’s scheduled second-quarter earnings report.

Brenner wrote, “We look for a 12.0% increase in net sales to $54.9MM, and we estimate EPS at $0.10 vs. $0.06. We look for an 11% increase in beer shipments, to 230K bbls, including contract beer sales”. The analyst continued, “CBA should fully participate and benefit from the rapid growth of the craft beer category. Its superior distribution capability with a tie to Anheuser-Busch distributors and largest brand selection should provide sustained strong volume growth, in our opinion. Management has projected a 500-700 bp increase in gross margins over the next five years, which could result in double-digit income growth”.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anton Brenner has a total average return of 10.1% and a 55% success rate. Brenner has a -11.6% average return when recommending BREW, and is ranked #835 out of 3205 analysts.

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