BellRing Brands stock rating upgraded to Buy at DA Davidson

Published 27/05/2025, 12:04
BellRing Brands stock rating upgraded to Buy at DA Davidson

On Tuesday, BellRing Brands (NYSE:BRBR), a $7.8 billion market cap company, received an upgrade in its stock rating from Neutral to Buy by analysts at DA Davidson, with a revised price target set at $85.00. This adjustment comes after the company’s shares experienced a notable decline, dropping 21% following the announcement of its second-quarter results for the fiscal year 2025 on May 6. According to InvestingPro data, the stock is currently trading at $61.68, between its 52-week range of $48.06 to $80.67.

DA Davidson’s analysts cited several reasons for the optimistic outlook on BellRing Brands. They believe that recent retailer inventory reductions do not forecast significant challenges ahead. Their analysis indicates that BellRing’s Premier Protein products are performing well on retail shelves and that the allocation for protein shakes, especially within the performance sub-segment, is expected to continue its expansion. InvestingPro data shows strong fundamentals, with revenue growing at 18.9% and an "GREAT" overall financial health score.

The analysts also pointed to long-term factors that could contribute to BellRing Brands’ continued growth. They mentioned secular tailwinds and the company’s strategic levers as key drivers that could support sustained growth beyond the industry standard for the foreseeable future.

Furthermore, DA Davidson suggests that BellRing Brands could be an attractive acquisition target, especially in light of the recent dip in its stock price. This perspective adds another layer to the company’s potential for growth and value appreciation.

The upgrade by DA Davidson reflects a positive sentiment towards BellRing Brands’ prospects, despite the recent sell-off in its shares. The new price target of $85.00 indicates a level of confidence in the company’s ability to rebound and capitalize on its market position and growth strategies.

In other recent news, BellRing Brands has been the focus of several analyst assessments following its financial disclosures. The company reported its second-quarter 2025 results, prompting DA Davidson to maintain a Neutral rating while reviewing their price target of $85. TD Cowen, however, adjusted its price target for BellRing Brands to $78, citing temporary inventory adjustments as the reason for a recent decline in shares, yet maintained a positive outlook with a Buy rating. Similarly, Evercore ISI lowered its price target to $82 but remained optimistic about future organic sales growth, maintaining an Outperform rating.

Jefferies also reduced its price target to $80, reinforcing a Buy rating, and noted the strong consumption trends despite retailer destocking. Citi followed suit, cutting its target to $80 while keeping a Buy rating, expressing confidence in the company’s long-term prospects despite short-term sales challenges. Analysts across the board seem to agree that recent stock price movements may not fully reflect BellRing Brands’ business fundamentals. The company continues to navigate inventory adjustments while maintaining strong demand for its protein products, suggesting potential growth in the near future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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