Boston Beer's Stock Underperformance Unlikely to Change on Q3 Results, RBC Says

10:47 AM EDT, 10/20/2026 (MT Newswires) -- Boston Beer's (SAM) stock underperformance is unlikely to change on account of its Q3 results, with persistent volume softness and higher freight costs expected to continue into next year, RBC Capital Markets said in a Tuesday note. RBC said scanner volumes were down 7.1% in Q3, compared with a drop of 8.3% in the previous quarter, adding that scanner data historically overstates depletions and that there is risk to the consensus depletion forecast of a 4.7% decline. On the bright side, Boston Beer has been consistent in maintaining its gross margin, with Q3 gross margins slated to remain resilient even as comparisons are meaningfully tougher, with Q3 of 2025 posting a margin of 50.8%, according to the note. Additionally, RBC said it expects modest pressure to full-year numbers coming out of Q3 earnings, with depletions tracking toward the low end of the 2026 low-single-digit to mid-single-digit percentage decline range all year. Meanwhile, elevated freight costs are expected to push EPS estimates toward the lower end of the $8.50 to $10.50 guidance range. Boston Beer is scheduled to report its Q3 results on Thursday. RBC maintained its Sector Perform rating on the stock with a $190 price target. Price: 184.37, Change: +2.55, Percent Change: +1.40