Boston Beer (SAM) is likely to report another weak quarter in terms of volume, mainly due to ongoing pressure in the broader beverage alcohol market, RBC Capital Markets said in a note emailed Tuesday.

"We don't see much upside and expect [Boston Beer] to deliver another quarter of soft volume performance largely impacted by broader category pressures which has weighed on Twisted Tea," RBC said, adding that while Truly has seen some sequential improvement, it remains weak and smaller brands like Sun Cruiser and Hard Mtn Dew are beginning to contribute but are still in early stages.

While the company is managing gross margins effectively, a 4.3% year-over-year volume decline in Q1 and weakening Twisted Tea performance highlight ongoing demand softness, with shipments possibly reaching the high end of guidance due to seasonal preparations and new launches, though depletions remain weak ahead of summer, the report said.

Looking ahead to 2025, the brokerage expects guidance to reflect continued pressure on the beverage alcohol category, RBC said. "SAM is still small enough to gain share in a difficult category but at this point we are not expecting anything material," it added.

RBC has a sector perform rating on Boston Beer with a price target of $279.

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