Deutsche Bank provided its outlook on The Boston Beer Company, Inc. (NYSE:SAM) ahead of the Q3 earnings announcement, expecting the company to report largely in-line results while reiterating its 2022 guidance.

However, the analysts remain cautious about Truly trends and see risk in the company over-extending the Twisted Tea brand as a replacement for lost Truly sales, especially amidst heightened macro uncertainty into 2023.

In comparison to their previous estimates, the analysts raised their revenue and gross margin forecasts behind slightly better volume performance in scanned channels and sequentially easing cost/supply chain pressures. However, they similarly increased expected AP&S spending as they see the company broadly maintaining brand support, especially into a tougher consumer backdrop and as the company renovates the Truly brand, leading their EPS estimate slightly lower. The analysts raised their price target on the company’s shares to $315 from $296, while maintaining their hold rating.