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Investing.com - DA Davidson lowered its price target on BellRing Brands (NYSE:BRBR) to $58.00 from $85.00 on Friday, while maintaining a Buy rating on the stock. According to InvestingPro data, the stock’s RSI suggests oversold conditions, with shares down nearly 28% in the past week.
The significant price target reduction follows a challenging period for BellRing Brands, which has lost approximately half of its market capitalization since reporting second-quarter 2025 results on May 5. The company maintains strong fundamentals with an overall "GOOD" Financial Health score and a current ratio of 2.55x, indicating solid liquidity.
DA Davidson acknowledged that its previous upgrade of the stock failed to adequately account for share risk and underestimated the impact of competitive threats in the market.
The firm noted concerns about temporary club channel pallet expansion, which implies approximately 200 basis points of risk to market share, though analysts believe about one-third could potentially be recovered through other channels including single serve, coolers, and direct store delivery (DSD).
Despite recognizing that fiscal year 2026 will likely be a "below algorithm year" for BellRing Brands, DA Davidson maintained its Buy rating, suggesting that these challenges are already reflected in the current stock price.
In other recent news, BellRing Brands reported its financial results for the third quarter of 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $0.55, surpassing the forecasted $0.50. Revenue also outperformed projections, reaching $547.5 million compared to the expected $531.12 million. Despite these strong financial results, the company’s stock saw a significant decline in premarket trading following the announcement. In related developments, William Blair has reiterated its Outperform rating on BellRing Brands. The firm maintains a positive outlook on the company, describing the recent stock price decline as "draconian" and suggesting it presents an attractive entry point for investors. These recent developments highlight the mixed reactions in the market to BellRing Brands’ performance and prospects.
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