Analyst: Will Sam Adams beer be hurt by slowdown?

A Goldman Sachs analyst downgraded Boston Beer Co., which makes Samuel Adams brews, to "Sell" from "Neutral" due to slower traffic in bars and restaurants and lower expectations for volume growth in the second half of the year.

Analyst Lindsay Mann cut the company's rating in a note to investors last night and lowered the price target to $35 from $41.

Mann said volume growth in the second half of 2008 and the 2009 will likely be more modest. Volume is an industry term that represents the amount of the product sold directly and indirectly to consumers.

But the analyst said price increases, consumers moving back to buying beer to avoid pricey spirits drinks and market share gains "should provide some positive offset."

Mann now expects the company to report profit of 20 cents per share for the third quarter, and 99 cents per share in 2008, down from $1.06 per share. The analyst also cut profit estimates for 2009 by 10 cents per share and lowered 2010 expectations by 12 cents per share.

Analysts, on average, are expecting earnings of 30 cents per share in the third quarter, according to Thomson Reuters. (AP)